Problem of Delayed Payments to MSMEs
From Current Affairs Notes for UPSC » Editorials & In-depths » This topic
What is the extent of payment delays?
- Quantitative analysis estimates that about 10.7 lakh crore INR is stuck as such delayed payments to Indian MSMEs. This is 6% of India’s Gross Value Added (GVA) for 2020-21.
- According to estimates, based on Dun & Bradstreet’s proprietary data and Prowess IQ, payments worth about 6.3-10.7 lakh crore INR were delayed in 2020-21.
- With respect to the number of days of delay- micro enterprises faced 194 days delay, small enterprises 68 days and medium enterprises 46 days.
Why is delayed payment an issue for MSMEs?
- When the payment is delayed, there is value erosion. MSMEs ar
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