In this special edition of Restarting India, CNBC-TV18 focuses on to the MSME sector, the second largest employer in India and one of the worst casualties of the COVID-19 pandemic.
Manpower crunch, lack of cash flows, low demand and lack of capital are some of the problems plaguing the sector. The government has already intervened, operationalisng Rs 3 lakh crore credit guarantee scheme for the sector.
The Reserve Bank of India (RBI) has thrown in a life jacket as well, allowing banks to restructure specific stressed MSME loans without classifying them as NPAs. But, the pain is far from over.
However, it's not all gloom and doom for the sector. In fact, the COVID pandemic has acted as a disruptor, pushing the MSME sector to embrace technology.
Over the next thirty minutes CNBC-TV18 team of reporters will be getting up a status check on how the MSME sector has turned the COVID challenge into opportunities by leveraging the digital medium.
But, where is the sector placed exactly when it comes to relief from the government? According to finance ministry data as of August 24, around Rs 1.55 lakh crore has been sanctioned under the government's emergency credit line guarantee scheme. That's a little over 50 percent of the Rs 3 lakh crore sanctioned. Animesh Saxena, president of Federation of Indian micro, small & medium enterprises (FISME) is in conversation with CNBC-TV18.