WHAT THEY WILL DO

Lowering leverage: MSMEs are set to reduce fixed expenses. Many will rethink reliance on bank credit for expansion as they are feeling the pinch of high interest outgo

Cutting flab: MSME sector, which accounts for one-third of India's GDP and employs nearly 11 crore, will see huge retrenchments as economic activities remain limited. A survey by industry body FISME and Skoch Group has found that almost 30 per cent MSMEs will prefer to cut staff strength by half

Expanding product bouquet: Many MSME players are looking at getting into essential items to ensure cash cushion. For instance, some small auto component makers have set sights on medical equipment and hospital furniture. Some MSMEs in the apparel business have added an additional production line to make PPE kits and face masks

Joining hands with foreign firms: With the government ready to hand-hold local MSMEs, many are expected to enter into technical tie-ups with companies exiting China and looking for alternative manufacturing hubs