An Assessment of the Economic Impact of the ECLGS on MSMEs of Gujarat

Abstract

• MSMEs are widely accepted as the lifeline of any economy especially of a state like Gujarat which is known as the economic powerhouse of our country. The Pandemic induced distress in the economy necessitated the introduction of a slew of measures by the Government to not just salvage them but to ensure that they manage to survive this difficult period and also not falter financially post this difficult time. One of the important steps taken by the Union Government to address the issue of preventing the MSME sector from going bust, was the introduction of Emergency Credit Life Guarantee Scheme (ECLGS).


• The main objective of this study was to find out the precise economic impact of this scheme on the MSMEs of Gujarat state distressed due to the Pandemic. Central to this study was the effort to determine the exact economic impact of this scheme through the various economic parameters that have been influenced by the ECLGS on the financial improvement of the MSMEs of Gujarat state which had been severely distressed by the Pandemic.


• The assessment of the economic impact of the ECLGS on the MSMEs of Gujarat was determined through the use of a Questionnaire-based study. The study was carried out on a sample of 100 select MSMEs representing varied regions and sectors of Gujarat. The data for this study was gathered from many related research papers, periodicals, government publications and so on. The findings of the study gave the definite conclusion that the scheme had immensely benefitted the MSMEs. The one clear takeaway of the study was that such schemes are very effective in providing the necessary economic impact and the authorities should ensure that they become more impactful in future when the need arises.