AIJR Preprints Section: Coronavirus Article Id: 207, Version: 1, 2020 URL:https://preprints.aijr.org/index.php/ap/preprint/view/207 {Click on above link to see the latest available version of this article} Version 1: Received: 09 August 2020 / Approved: 12 August 2020 / Online: 13 August 2020 Copyright © 2020. The Author(s). This is an open access preprint (not peer-reviewed) article under Creative Commons Attribution- NonCommercial 4.0 International license, which permits any non-commercial use, distribution, adaptation, and reproduction in any medium, as long as the original work is properly cited. However, caution and responsibility are required when reusing as the articles on preprint server are not peer-reviewed. Readers are advised to click on URL/doi link for the possible availability of an updated or peer- reviewed version. How to Cite: Pushakar Dubey et al. “MSMEs in COVID-19 Crisis and India’s Economic Relief Package: A Critical Review”, AIJR Preprints, 207, version 1, 2020. https://preprints.aijr.org/index.php/ap/preprint/view/207 NOT PEER-REVIEWED MSMEs in COVID-19 Crisis and India’s Economic Relief Package: A Critical Review Pushakar Dubey 1 , Kailash Kumar Sahu 2* 1 Deartment of Management, Pt. Sundarlal Sharma (Open) University Chhattisgarh 2 Department of Management, Dr. C. V. Raman University Bilaspur Chhattisgarh ABSTRACT MSMEs (Micro, Small and Medium Enterprise) are the backbone of Indian economy as it contributes more than 30% in the India’s GDP (Gross Domestic Product). The present research studies the current conditions of MSMEs amid corona virus crisis and the economic relief package, specifically for MSMEs, entitled as “Atmanirbhar Bharat (Self-Dependent India)” in order to revive the business activities of MSMEs. Critical review of the economic package and modification needed in terms of MSMEs issues in the further announcements were discussed in this paper. Former RBI (Reserve Bank of India) governor Raghuram Rajan and Nobel Prize winner in economics Prof. Abhijit Banerjee has also contributed in the discussion in order to revive the Indian economy. Keywords: MSME, Indian Economy, Economic Package. 1 Introduction The COVID-19 pandemic has impacted all the sectors of economy, but worst hit the MSME (Micro, Small and Medium Enterprise) sector in India. All anecdotal evidence explained that MSMEs are in the worst conditions due to the COVID-19 lockdown as many stranded migrant workers moving towards their home all across the country. Suvodeep Rakshit of Kotak Institutional Equities stated that MSMEs were already facing problems such as decline in capacity utilisation and effective generation of revenues before the COVID-19 crisis. The total lockdown in the country created panic and raised an existence question for micro industries/enterprises as these firms are not having much cash in hand to wait out the crisis which results in mass job losses. According to the survey conducted by Suvodeep Rakshit on small and medium businesses, only 7% of them were saying that their businesses would survive more than three months in the condition of complete lockdown (only essential services open). Even in the restarting position, there will be labour unavailability crisis in the urban areas [1]. Micro, small and medium enterprises (MSMEs) are the backbone of Indian economy. According to Annual report 2018-19 of Department of MSMEs, about 6.34 crore MSMEs functioning in the country which employs 11 crore brought to you by CORE View metadata, citation and similar papers at core.ac.uk provided by AIJR Preprints