The area of Pimpri-Chinchwad is considered as one of the biggest industrial areas in Asia which have headquarters of many national as well as international companies. As the industrial sector has great connectivity to Pune and Mumbai, Pimpri-Chinchwad is one of the major hubs for many businesses.
Earlier, Pimpri-Chinchwad was declared as a red zone after the COVID-19 outbreak, but the things came back to normal, and relaxations were given on the lockdown. Before the lockdown 4, businessmen and owners of industries in the region were informed about the terms and conditions to re-start the work. Some businesses are back in operation, but there are some things which are impacting on these businesses.
AREA OF CONCERN
Currently, over 10,000 businesses are operating in the Pimpri Chinchwad area. Many firms are facing a shortage of workforce as migrant labourers are shifted to their states. Till now, around 2000 to 2500 businesses have not started in the city, and among them, more than 1500 are facing problems of inadequate capital. Many firms are also facing a problem of insufficient supply of raw materials. In all such consequences running a business has become a risky game.
Meanwhile, many organizations and CEOs of various companies are looking for a solution to tackle these problems.
The COVID-19 pandemic is giving bad time to all the small business firms, especially to those with scant capital. Nationwide lockdown due to the COVID-19 pandemic has resulted in low demand. According to the economic pundits, MSMEs (Micro, Small and Medium Enterprises) will be worst hit due to these unprecedented conditions. The Government of India is also pulling up the socks to provide support to these small businesses.
A few days back, Finance Minister Nirmala Sitharaman announced that small businesses would be provided collateral-free loans of $40 billion amidst the coronavirus outbreak. Prime Minister Narendra Modi also stated that his government would pay an amount equivalent to 10 per cent of the GDP (Gross Domestic Product).
Even though to boost the economy, the business cycle has kick-started, the risk factor hovers over the industrial sector. Inadequate capital, uncertain conditions and lower demand are the main fear factors.
