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Read the following hypothetical text and answer question that follow:
India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.
Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .
  • a)
    Liquidity crunch
  • b)
    Obsolete technology
  • c)
    Government Interventions
  • d)
    All of the above
Correct answer is option 'A'. Can you explain this answer?
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The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis.
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Liquidity Crunch:

The MSME sector suffered to a large extent in the COVID-19 pandemic situation due to a liquidity crunch. This can be attributed to the following reasons:

Lockdown Impact:
- The nationwide lockdown imposed to contain the spread of the virus led to a halt in business operations for many MSMEs, resulting in a significant loss of revenue.
- With no income coming in, many MSMEs struggled to meet their financial obligations such as paying salaries, rent, and other expenses.

Disrupted Supply Chains:
- Disruption in supply chains due to restrictions on movement of goods and labor further exacerbated the liquidity woes of MSMEs.
- Many MSMEs faced challenges in procuring raw materials and fulfilling orders, leading to a decrease in cash flow.

Reduced Demand:
- The pandemic also caused a decline in demand for non-essential goods and services, impacting the sales of MSMEs.
- With lower sales, MSMEs found it difficult to generate sufficient revenue to sustain their operations and repay loans.

Government Support:
- Recognizing the plight of the MSME sector, the government and financial institutions introduced various relief measures such as moratoriums on loan repayments and emergency credit lines.
- However, these measures were not always sufficient to address the liquidity crunch faced by many MSMEs.

In conclusion, the liquidity crunch experienced by the MSME sector during the COVID-19 pandemic was primarily due to the lockdown impact, disrupted supply chains, and reduced demand, highlighting the vulnerability of these businesses during times of crisis.
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Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .a)Liquidity crunchb)Obsolete technologyc)Government Interventionsd)All of the aboveCorrect answer is option 'A'. Can you explain this answer?
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Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .a)Liquidity crunchb)Obsolete technologyc)Government Interventionsd)All of the aboveCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .a)Liquidity crunchb)Obsolete technologyc)Government Interventionsd)All of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .a)Liquidity crunchb)Obsolete technologyc)Government Interventionsd)All of the aboveCorrect answer is option 'A'. Can you explain this answer?.
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However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .a)Liquidity crunchb)Obsolete technologyc)Government Interventionsd)All of the aboveCorrect answer is option 'A'. 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The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .a)Liquidity crunchb)Obsolete technologyc)Government Interventionsd)All of the aboveCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. 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The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. The MSME sector suffered to a large extent in COVID-19 pandemic situation due to ________ .a)Liquidity crunchb)Obsolete technologyc)Government Interventionsd)All of the aboveCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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