Around 32 percent of a survey's participants said their business will take 6 months to recover while 12 percent said it would take three months.
Around one-third of micro-small and medium enterprises (MSMEs) have begun closing their operations as recovery from the COVID-19 outbreak seems difficult.
The All India Manufacturers' Organisation (AIMO) said the government's financial package for MSMEs was insufficient, The Economic Times reported.
As per an AIMO survey, around 35 percent of MSMEs and 37 percent of self-employed individuals have begun closing their businesses, the report said.
MSME lending: Digital lenders, fintechs at crossroads amid COVID-19
Moneycontrol could not independently verify the report.
The COVID-19 outbreak and consequent lockdown forced businesses to pause operations. The lockdown began on March 25 and gradual lifting of restrictions began on June 1.
Around 32 percent of the survey's participants were of the view that their business will take six months to recover while 12 percent said it would take three months, ET reported.
AIMO said such "mass destruction of business" was unprecedented as quoted by the publication.
"India has over 65 million MSMEs employing over 150 million people and over 130 million people are self-employed. This kind of mass destruction of business has not been witnessed since our Independence," KE Raghunathan, the immediate past president of AIMO, was quoted as saying in a statement.
The survey recorded 46,000 responses from several association and groups.
Facebook-BCG report suggests these measures for businesses to unlock the changing consumer behaviour in the current pandemic. Read More!
