Sectoral Financial Resilience and Recovery: A Post-Pandemic Analysis of Indian MSMES Through Secondary Data

Rajmani Pandey

International Journal of Scientific Research in Science and Technology, 2024, vol. 11, issue 6, 1161-1161

Abstract: This study empirically investigates the financial resilience and recovery trajectory of the Micro, Small, and Medium Enterprise (MSME) sector in India following the COVID-19 pandemic. Utilizing exclusively secondary data from the Reserve Bank of India (RBI) database on the MSME sector and the Ministry of Corporate Affairs (MCA21 portal), this paper analyzes key financial metrics across three key sectors: Textiles, Basic Metal & Metal Products, and Food Products. Data from the pre-pandemic (FY 2018-20) and post-pandemic (FY 2021-23) periods were compared. Financial ratios for Profitability (Return on Capital Employed - ROCE), Liquidity (Current Ratio), and Efficiency (Debtor Turnover Ratio) were calculated. The analysis employs Descriptive Statistics and a Paired T-Test to determine the significance of the changes. The findings indicate a V-shaped recovery, with the Food Products sector demonstrating superior resilience and a faster rebound in profitability and efficiency compared to the Textiles and Metals sectors, which showed a more protracted recovery in liquidity. The study concludes that the nature of the industry (essential vs. non-essential) played a critical role in determining financial resilience, offering valuable insights for targeted policy formulation and strategic financial planning.

Keywords: MSMEs; Financial Resilience; Secondary Data; ROCE; Liquidity; Post-Pandemic Recovery; RBI; Sectoral Analysis (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:etm:ijsrst:v11:y2024:i6:id:1521

DOI: 10.32628/IJSRST25126424

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