There is a dire need to revive MSME sector for boosting rural employment: Report
According to Genius Consultants, over 57 percent of respondents strongly agreed the revival of MSMEs would aid in improving the current employment situation.
To boost rural employment, around 57 percent of Indian companies believe there is a need to revive the MSME sector, which has been hit due to the COVID-19 pandemic, according to a report by Genius Consultants.
Titled ' The Sudden Rise of Rural Unemployment', the report states India's economy was adversely affected by the pandemic, and almost all sectors and industries were impacted, especially the MSME sector, which faced a huge setback.
The report, based on a survey, said most of the respondents believed the reason behind the high unemployment rate is the lack of employment opportunities available in the areas concerned.
Genius Consultants Chairman and Managing Director R P Yadav said, "Rural unemployment has always been a major concern even before the pandemic. With businesses and manufacturing slowing down, the situation has deteriorated even further."
The survey covered 1,100 business leaders between August 1 and September 10. They include those in sectors such as banking and finance, construction and engineering, education/teaching/training, FMCG, hospitality, HR solutions, IT, ITeS, and business processing outsourcing, logistics, and manufacturing, among others.
The report further showed more than 57 percent of the total respondents strongly agreed that the revival of MSMEs would aid in improving the current employment situation.
About 14.3 percent of the respondents believe the reason behind rural unemployment was the lockdown restrictions, and another 14.3 percent said it was due to the rise in the COVID-19 cases, according to the report.
The remaining respondents believed it is a result of all reasons mentioned above that led to a spike in unemployment in rural areas, it added.
Meanwhile, the report found that over 85 percent of respondents stated the manufacturing sector, which has been witnessing a slowdown, has been a major contributor to the rise in unemployment in the rural areas.
As factories and production are one of the major contributors of rural employment, and with the pandemic halting businesses, the manufacturing sector has majorly impacted rural unemployment compared to the service sector, it said.
Yadav added that there is a dire need to bring in a swift course of action to elevate employment opportunities in the rural parts of the country.
Edited by Suman Singh