Home / Knowledge / News / Textiles / 70% Indian MSMEs want to cut staff to survive: AIMO survey

70% Indian MSMEs want to cut staff to survive: AIMO survey

09
Jun '20
Pic: Shutterstock
Pic: Shutterstock
Over 70 per cent of micro, small and medium enterprises (MSME) may reduce their staff count to survive and bounce back, according to a survey conducted by the All India Manufacturers Organisation (AIMO), which found less than 20 per cent of all categories—corporations, MSMEs, self-employed persons and others—said they would continue with the same headcount.

This was the second part of the survey series conducted by AIMO and covered 46,525 participants.

The survey was conducted in association with Digitally 4 Empowerment (D4E), a social tech enterprise and other trade bodies like Federation of India Industry (FII), Association of Indian Industry (AII), Cement Manufacturers Welfare Association (CMWA), Consortium of Women Entrepreneurs of India (CWEI), Federation of Indian Women Entrepreneurs (FIWE),First World Community (FWC), Chamber of Small Industry Association (COSIA), Federation of Small and medium Industries (FOSMI), and Amausi Industries Association, Lucknow (AIA).

“The extent of the job loss will be clear by the end of August 2020, as most of the respondents were in the process of gauging how many of their employees will return and the optimum employee strength required to sustain their business in the near future,” K E Raghunathan, immediate past president of AIMO, was quoted as saying by Indian media reports.

The survey covered demand forecast, collection of pending dues, raw materials, future equated monthly instalment payments (EMIs), present interest burden and salary issues. The biggest concern of 36 per cent of the self-employed was their ability to pay EMIs as they had issues with pending payments for work done earlier.

The future of the livelihood of MSME entrepreneurs and the existence of the families that depend on them is in a very precarious position, a senior AIMO executive added.

The corporate respondents, however, had a slightly different set of perspectives, with 22 per cent citing manpower concerns, 22 per cent expressing concerns on sourcing of raw materials and price management and 23 per cent expressing concerns over new orders for the next three months.

Distribution of raw materials to the MSMEs through government undertaking National Small Industries Corporation (NSIC) through a model similar to a public distribution system on credit and at reasonable prices could help the industry solve many of the issues it faces, the respondents suggested.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 15th Jun 2021

Australia, UK agree on broad terms of trade deal

Prime Ministers Scott Morrison and Boris Johnson have agreed in...

Pic: Shutterstock

Textiles | On 15th Jun 2021

Germany passes law on corporate due diligence in rights, environment

The German parliament passed a law last week that warrants large and...

Pic: Azamat Imanaliev / Shutterstock.com

Apparel/Garments | On 15th Jun 2021

Prime Content| Revenue, profits of major garment firms in China rise in Jan-April

Revenue, profits, output, online retail sales and exports of major...

Interviews View All

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Cannot see the world breaking away from cotton & polyester

Textile Industry, Head honchos

Textile Industry
Head honchos

Opportunity now to reimagine processes & systems in a digital environment

Amanda Cioletti,

Amanda Cioletti

The entertainment/character segment lead as the largest sector for the...

Bharat Ahuja,

Bharat Ahuja

A mono store brand, <b>Bharat Ahuja's</b> Desire Design Studio has emerged ...

Rajat Kapoor,

Rajat Kapoor

Seraphine is a British maternity brand providing affordable luxury fashion ...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit
ITTA

The Indian Technical Textile Association (ITTA) is the only association of ...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search