The country is currently dealing with not only the COVID-19 pandemic, but also a lot of collateral damage caused by the virus that is now threatening to go out of control. The worldwide economic slowdown is now threatening the livelihood of millions across the globe, including people in India.
For most companies, the second quarter of this year has been wiped out. They are not only dealing with loss of revenue due to the lockdown, but also the impact of all the major economies slowing down. This is impacting bottomlines, translating into lower production, workforce layoffs, lower profits and thereby lower taxes. With production down to zero, employees locked down in their homes and no sales, most micro, small and medium enterprises (MSMEs) are looking with concern at the biggest fixed cost in such an environment—the workforce.