Decoding the MSME and Construction Packages

The Indian MSME sector and construction industry were struggling in the pre lockdown era. There were multiple issues for MSMEs, like access to bank/NBFC credit, dumping/competition from international suppliers, delayed payment by government departments, CPSE and industry in general, labour law compliance like payment of EPF/ESIC. The construction industry was also facing issues like bank credit, depleting order book, delayed payment from government and private sector. We have seen multiple MSME and construction industry ratings being downgraded only because of non payment of their bills in due time. This has put unintended burden on MSME and construction industries.

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