THE IMPACT OF COVID 19 ON KERALA'S MSME SECTOR

Abstract

Micro, small, and medium-sized business growth is critical to a country's economic development. Many see it as a job-creating machine that promotes equitable and inclusive growth. Over 12 million people work in India's MSMEs, which account for 30% of the country's GDP. Kerala is a state that prioritises and actively works to strengthen MSMEs. Kerala ranks 14th in the MSME Annual Report 2020-21. Of the 23.79 million units, 23.58 million are micro-enterprises employing 44.64 million people. Due to Kerala's land fragmentation, SME's outperform large corporations. So Kerala is keen on developing the MSME sector. The COVID 19 pandemic hit the country's manufacturing and SME sectors hard. The pandemic hit MSMEs hard, leaving many unable to pay employees, pay debts, or run their businesses. So an MSME sector strategy was required. The government has developed a strategy to develop the MSME sector, which is vital to the economy and GDP. This study focuses on the impact and future of the COVID 19 pandemic on Kerala's MSME sector. The study's main goal is to understand the current MSME sector and India's economic prospects.