MSMEs are backbone of Indian economy. It provides employment to around 120 million people in India, have huge commitment to GDP, contribute about 45% of exports, make way for comprehensive development and budgetary implications. However, shortage of resources of money, manpower, material, absence of FDI, less use of technology, vulnerability of infrastructural facilities and lack of marketing assistance are some of challenges faced by MSMEs. The paper focuses on impact of lockdown on MSMEs due to COVID 19 and make appropriate suggestions to MSMEs to deal with the impact. The core areas of impact were market, finance, logistics, manufacturing, people, premises, managerial implications. Government measures to tackle the impact and suggestions were given to deal with lockdown and to survive the slap of pandemic

1. SURVIVAL STRATEGIES FOR COVID-19
CRISIS : A STUDY ON INDIAN MSMEs
Rupesh Yadav
Research Scholar
Department of Commerce
The University of Burdwan

2. Introduction
• MSMEs are backbone of Indian economy. It provides employment to around 120 million people in India,
have huge commitment to GDP, contribute about 45% of exports, make way for comprehensive
development and budgetary implications. However, shortage of resources of money, manpower, material,
absence of FDI, less use of technology, vulnerability of infrastructural facilities and lack of marketing
assistance are some of challenges faced by MSMEs. The paper focuses on impact of lockdown on MSMEs
due to COVID 19 and make appropriate suggestions to MSMEs to deal with the impact. The core areas of
impact were market, finance, logistics, manufacturing, people, premises, managerial implications.
Government measures to tackle the impact and suggestions were given to deal with lockdown and to
survive the slap of pandemic.

3. • Research Objectives
• 1) To study impact of lockdown on MSMEs due to COVID 19 pandemic.
• 2) To study the Significance Of MSMEs for Indian Economy
• 3) To make appropriate suggestions to MSMEs to deal with the impact.
• 4) To study the Measures Taken by Government of India
• Research Methodology
The data was collected from various web-based learning sources, journals, discussion and conversations directed in news channels.

4. Significance Of MSMEs for Indian Economy
• Employment: It is the second biggest business creating part after horticulture. It gives work to around 120 million people in India.
• Commitment to GDP: With around 36.1 million units all through the geological spread of the nation, MSMEs contribute around 6.11% of
the assembling GDP and 24.63% of the GDP from administration exercises. MSME service has set an objective to up its commitment to GDP
to half by 2025 as India turns into a $5 trillion economy.
• Exports: It contributes around 45% of the overall exports from India.
• Comprehensive development: MSMEs advance comprehensive development by giving business openings in country territories particularly
to individuals having a place with more vulnerable areas of the general public.

5. Impact Of Lockdown on Indian MSMEs Due To COVID 19
• Businesses Battling : Businesses are willing to pay compensations for a month, however working capital troubles mean they can't expand it
without direct government support.
• Decrease in Demand : There is decrease in demand due to lockdown
• Problem of Imports : Those SMEs which were dependent on imports from China, have stopped functioning.
• Migration of Workforce : Majority of workforce had migrated to their native place due to lockdown making operations practically impossible.
• Working Capital :The businesses are by large dependent on their life-blood i.e.: working capital, but the blood supply has totally stopped since
most of businesses have zero sales because of lockdown. This is hampering their day to day payments.

6. Measures Taken by Government
• The Reserve Bank of India recently introduced Long Term Repo Operations (LTRO) worth Rs 100,000 crore to help banks increase lending at
cheaper interest rates.
• The extension has been announced of the last date to file belated Income Tax Return for all businesses for the FY 2018-19 from March 31 to June
30 2020.
• The deadline for GST returns filing for March, April and May is now June 30 2020.
• The government of India will pay the EPF contribution both of the employer and the employee (12% each) for the next three months, Finance
Minister announced.
• RBI had announced that all term loans, including retail and crop loans and working capital payments, will be covered by the three-month
moratorium. Banks will now have discretion in deciding the limits on working capital, with RBI saying that no payment miss should be considered
a default and reported to credit information companies.
• Reduction in Repo Rate by RBI

7. Suggestions for MSMEs to Deal With Lockdown Due To COVID 19
• Going On Cloud: By picking cloud accounting programming organizations can battle the burden realized by this situation. They can impart, representative and screen all work
and furthermore guarantee the security of their group by being restricted at homes. Hence, even right now extraordinary unrest, organizations can monitor accounting and
consistence. Benefits of cloud accounting software are uniform accessibility, work smarter and faster, hassle free data storage and back up, secured privacy and data, etc.
Financial emergencies, cataclysmic events, health related crises, are circumstances that can hit a business with no notice and lead to a disastrous change in their likely
arrangements. In this way, the interest of great importance is to grasp tech interruptions at the soonest and be future prepared consistently.
• Work From Home: If possible, give work from home to employees and track/monitor their work. This will keep the business rolling for time being. Many companies do have
such provision.
• ACT NOW TO INCREASE CASH FLOWS :Near future struggle with cash flow is for sure. Act on this issue. INCREASE ONLINE SALES To stay feasible with less clients about, SMEs
should start selling on the web or increment the amount they sell on the web. It is imperative to explore distinctive online stages to see which is appropriate for your business
needs. Survey how best to convey your items to the client. Administration providers ought to examine advanced answers for the administration conveyance to diminish the
requirement for physical communication. Thus, decide to close a portion of your physical areas.
• COMMUNICATE WITH SUPPLIERS : Converse with your key providers about their conveyance dependability during the emergency. Consider their capacity to create the data
sources you need, the transportation of the items to you and the concurred costs/costs. Providers may be hit by movement limitations, so think about setting up elective
providers, including nearby providers regardless of whether pricier. Source them now and arrange costs early.
• COMMUNICATE WITH LENDERS : Those who have helped you with finances its necessary for you to communicate and ask them for some time to repay your loan and interest
on loans.

8. CONCLUSION
• The lockdown due to COVID 19 has already hampered Indian economy. Most of the
MSMEs are battling to survive. Suggestions have been given to deal with impact may
help to some extent. Even after lock down gets over there’s no magic to recover from
its impact immediately. Recovery will take time. Most of MSMEs are unorganized and
unregistered. Government should take action before the time bomb explodes and try
to help the MSMEs to survive, the most important aspect of our Indian economy.