Economic Consequences of COVID-19 Lockdowns on Indian MSMEs: Insights from a Nationwide Survey

Authors

Mr. Subhash Sambhaji Agale

Abstract

The COVID-19 pandemic led to severe economic disruptions globally, with Indian Micro, Small, and Medium Enterprises (MSMEs) being particularly vulnerable due to their limited financial reserves and resilience. This study aims to assess the economic consequences of COVID-19 lockdowns on Indian MSMEs by analyzing data from a nationwide survey of 900 MSME owners and managers across different regions and subsectors. The research employed a descriptive design with quantitative data collected via a structured online survey conducted from June to August 2021. Key findings indicate that 40% of MSMEs reported high financial distress with average revenue losses of 45.3%. The primary operational challenges included supply chain disruptions (50%) and labor shortages (42.2%). Digital transformation emerged as the most effective coping mechanism, while access to finance and digital adoption were significant predictors of resilience. The study highlights regional and sectoral disparities in the impacts and emphasizes the critical need for targeted financial support, digital skills development, and enhanced supply chain resilience. The findings suggest that addressing these areas through tailored policy interventions is essential for fostering a more resilient MSME sector, crucial for India’s economic recovery and long-term growth.

Keywords

COVID-19, Indian MSMEs, economic impact, resilience, digital transformation, supply chain disruptions.

Economic Consequences of COVID-19 Lockdowns on Indian MSMEs: Insights from a Nationwide Survey. Mr. Subhash Sambhaji Agale. 2021. IJIRCT, Volume 7, Issue 6. Pages 1-10. https://www.ijirct.org/viewPaper.php?paperId=2409010