INDIAN SMEs NEED ROBUST POLICIES, NOT MERELY LOANS
LACK OF ESSENTIAL GOVERNMENT SUPPORT WOULD CRIPPLE THEM
2020-08-24 10:20
-
Small and Medium Enterprises (SMEs) have great potential but remains untapped in most developing countries including India. Most Indian SMEs having a lower share of foreign goods and services to produced exports, have been facing greater export and import barriers, and certain risks in global value chain (CVC) participation due to weaker bargaining power vis-à-vis larger firms. In the COVID-19 era, when both demand and supply chains are disrupted, they need robust policies to address these and the other issues, rather than a mere package of their revival in form of loans to them, as has been announced by the Narendra Modi government.