A Study of the Economic Impact of the Emergency Credit Line Guarantee Scheme (ECLGS) on Select MSMEs of Gujarat State distressed due to the Pandemic

Abstract

MSMEs have now been widely accepted as the lifeline of any economy especially of a state like Gujarat which is known as the 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. By delving into different parameters and analysing them comprehensively and thoroughly the study aims to unravel the varied layers of the economic impact of this scheme on the MSMEs of Gujarat state. The method to be used to study and determine the economic impact would be through a Questionnaire. The data for this study was gathered from many related research papers, periodicals, government publications and so on. This is a research review.