Corona crisis can turn to be a blessing in disguise for the MSME sector if it can trigger a revival and resurgence of small industries and businesses.
The COVID-19 crisis is likely to become a blessing in disguise for local manufacturing industries and for Micro, Small and Medium Enterprises (MSMEs) worldwide. It can be a trigger for their revival and resurgence. If so, the post-pandemic days will turn to be an opportunity for skilled, jobless and unorganized workers to contribute to local economies by way of being part of local ventures, small industries and agro-farm businesses.
As of now, global production is highly centralized and focused on a few manufacturing hubs. The world is dependent on supplies from these hubs. Local markets are being flooded with cheap imported products of all kinds. Local small manufacturing sector contribution in total production has receded significantly in favour of supplies from these cheap manufacturing hubs.
This scenario is not exclusive to manufacturing alone. In fact, even local farmers and farms are no longer active and cultivation-centric. For instance, in the state of Kerala, India, most of the vegetables and food items come from neighbouring states.
During the lockdown days, with the interstate movement of goods and services being limited, there could be shortages. An extended lockdown can affect the availability of most other items that are in high demand and a part of our daily lives.
While globalization has made economies more connected and global trade has accelerated, on the flip side, it has facilitated consumers shifting to imported cheap products, which made small and micro industries lose out in the game.
Indeed, the Covid 19 and lockdown season has made us all realize the need to strengthen and boost local manufacturing. If in the post corona days, our farms and land, which are all kept uncultivated, can start growing fruits and vegetables, that will be the best thing to happen to local economies and job creation. If people in each designated area can grow the required quantity of vegetables, fruits and other possible grains and pulses locally, that will be the biggest revolution.
Also, local factories and manufacturers can restart their activities. It is possible that the essential commodities that we consume on a daily basis can be made locally. There was a reservation of products, more than 800 were once reserved for the exclusive manufacturing by the Indian small-scale sector. A list of such items needs to identified once again and should be reserved for the exclusive manufacture of MSMEs. Swadeshi production or local manufacturing must be encouraged. And strengthening local industries has to be undertaken on a priority basis for post corona economic recovery. The time has come for local government bodies like panchayats to begin encouraging local manufacturing and small industries in a big way.
The days post COVID are meant for us to reinvent the relevance of the Charkka or the spinning wheel. It can help turn around the local economies and contribute significantly towards making our lives smoother and finding meaning. The question is: Will we find contentment in making products locally and consuming them? Or will we still look for cheaper imports?
P. Koshy,
Email: caushie07@gmail.com
Author Profile
-
Dr. Perumal Koshy is Editor of Global SME News and Director of Strategic Initiatives at Enterprise Futures Lab. He writes on MSMEs, enterprise development, and policy issues affecting small business ecosystems.
Linkedin: https://www.linkedin.com/in/caushie/
Twitter: https://twitter.com/pkoshyin
Latest entries
FEATURED25 November 2024Rethinking Work Hours: The Case for Balance in SME Growth Strategies?
AI25 November 2024Microsoft’s ‘Zero Day Quest’: A $4 Million Challenge to Revolutionize AI and Cloud Security!
FEATURED5 November 2024Collaboration Agreement Signed Between Mubadala Energy and Perusahaan Listrik Negara (PLN) to Explore Harnessing Natural Gas DiscoveriesFEATURED23 October 2024Resilient Trade Amid Global Uncertainty: How Intra-BRICS Commerce is Shaping a New Economic Order
I really wondered to listen the news that there are more than 45000 workers, who migrated other countries to earn a better life leaving their home country a barren land registered their name to receive the financial assistance of Rs.5000/- offered by Kerala Government. We all knew the present value of Rs. 5000/- in our modern life. This itself reveal the kind of life they are spending in other countries. Most of our agricultural land is lying unused and we are depending other states for our essential items. The present lockdown and other restrictions are a punishment by the nature to open the eyes of people who migrated to other places. Let this calamity may open the eyes of all such people. Kerala has proved they are second to none in the world in health care and facing any challenges.
Need a suggestion: In Western Odisha Cottage Industry like weaving, bamboo artists and their products are used by from poor to high middle class families but due to the lack of demand these people’s enterprises are in serious trouble. no market for their products. Moreover in Post Corona period there will be more probles for them because the consumers will have no money to buy so how they revive that is the question mark??
A gandhian economy, this is what you are suggesting. Local production is essential. While commodity chain is breaking off, what will be the alternative.?
This exactly is need of the hour