He said that while the lockdown
had created supply side shocks, these had transformed into demand side issues now when the lockdown
was being lifted. “The supply side issues with no production in the lockdown led to loss of income which created demand side constraints,” said Sen, who is now the country director at the India Growth Centre (iGC).
"For two months, these businesses faced production issues and now if they face further three months of lack of demand, they will die," he said. He furt5her said, "If the government does not take fiscal steps soon to revive the economy, MSMEs
will have to shut shop."
The observations by Sen came a day after the finance ministry came out with a progress card of the Rs 20 trillion Atma Nirbhar package. In it, the ministry said that Rs 61,987 crore had been disbursed to about 120,000 MSMEs under the collateral free loans.
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