| |December 20219The role government becomes critical to minimize these risks and optimize the benefits. MSMEs in India are impacted by Covid-19 in different ways. The size of Indian MSMEs are comparatively small in comparison to MSMEs in other countries. Most of MSMEs in India have limited assets and limited cash reserve, resulting in negative impact on functioning. Frankly, MSMEs were hit the hardest. No business sector has been more shaken than the India MSMEs. In many cases, MSMEs were forced to close their businesses. According to a study estimate of The Economic Times, 59 percent of startups and MSMEs (medium and small scale enterprises) are likely to scale-down, shut-down or sell themselves this year. Only 22 percent startups & MSMEs have more than three months runway; 41 percent are out of funds or have less than one month of funds left and 49 percent plan to reduce employee compensation and benefits costs by July.Critical Role Government Schemes & PoliciesGovernment of India appreciated the fact that MSME digitalization is a critical next step for the country, especially in the case of marketing of MSME products. It can leverage on Covid-19 ecosystem impact and MSMEs to gain greater access to diverse global markets and can mitigate risk within supply chains. Therefore, DT can be great tool for MSMEs to become internally competitive. Internationalize due to increased towards e-Commerce. Sectoral Impact of Covid-19 & Digital TechnologyHowever, the impact of the Covid -19 was different for different sectors. The DT may be more desirable and effective in areas of high risk and where work from home is feasible. These sectors are health care and Pharma, facility management services, IT and ITeS, Consultancy and Management and Education.DT benefits to MSMEsThe adoption of digital solutions by MSMEs may help businesses to avail new revenue streams, minimise costs and remove pain points. Specifically, in the light of COVID-19, digital solutions will be beneficial to MSMEs in the following ways:· Management of distant transactions. · Efficiency in delivery system · Improved availability of financial services· Better Engagement with new and old clientsThe digital advantages may be scaled up with available government schemes and policies with due awareness about cybersecurity and digital fraud, data privacy and wrong online information, difference in digital power of large and small players and other infrastructural related issues.ConclusionsThe COVID-19 Impact is one of the most sever on MSMEs. Though digitization is an ongoing process, the Covid-19 crisis hasten the process of digitization due the nature of virus and measure adopted to contain the virus. At the same time the MSME community responded very positively and adapted fast. Online training and conferences have become the new normal for MSME community. It is therefore very clear that Covid-19 provided very good rational for Indian MSME policy makers to proactively implement policies and schemes related to digitization of MSMEs (Which are so far remained non-functional due to different reasons). With the inclusion of trade community in MSMEs definition by the Ministry of MSMEs, Government of India, this segment may reap the benefits of digitization very fast. Similarly, in tourism and hospitality and handicraft sectors support may be further extended to optimise the use of digitization. There are different DT based aggregation models for raw material sourcing, B2B marketing for MSME intermediate products. These DT measures may be popularised among MSMEs to optimise cost and improve competitiveness. This may help in marketing and visibility of these sectors since they deal regularly with international customers. Any public private partnerships which may enhance better digital tools like cloud based marketing solutions. Any such support will help in restart of these sectors. Therefore, pandemic has accelerated the digitization rate of MSMEs created situation for policy makers to multiply their efforts in digitization in order to create future resilience as a part of fourth Industrial revolution. This also will help in laying foundation for digital future of MSMEs, which in turn will respond with better innovations and dynamic business handling and more broad based growth in the economy. DT can be great tool for MSMEs to become internally competitive. Internationalize due to increased towards e-Commerce
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