Government Policies Towards Businesses During Pandemic: Special Reference to MSMEs

Abstract

Covid-19 pandemic has dealt with an exceptional shock to the global and Indian economy. The economy was already in a parlous state before Covid-19 struck. The prolonged country-wide lockdown disrupted demand & supply chains and led to a downward spiral in world economy. World trade is expected to have fallen between 13% to 32 % in 2020. Therefore, to rescue the economy, governments worldwide have announced impressive fiscal and monetary stimulus packages and brought about widespread changes in their trade and commerce policies. This paper discusses the Indian government's policies and measures during Covid-19 pandemic to overcome the national and international businesses' challenges. In response to the falling economy, the Reserve Bank of India lowered key interest rates, provided support to people regarding aid and subsidies, and implemented the SDGs. It has also revived MSMEs by introducing the 'Atmanirbhar Bharat' (self-reliant India) scheme and provided the Prime Minister's economic relief and stimulus package to combat the challenges imposed by Covid-19.