India, Aug. 22 -- Most of India's economic enterprises might have resumed functioning after the country began to lift the nation-wise lockdown from June but are still far from achieving pre-pandemic levels of activity.

Only one in four of India's Micro, Small and Medium Enterprises (MSMEs), which produce almost 30% of the country's GDP and employ almost one fourth of the work force, were using even half of their installed capacity on August 1.

While things are improving compared to how they were in June, immediately after the national lock down was lifted; the nature of economic challenge is undergoing a transformation from liquidity related problems to falling demand and disruptions in supply chains and logistics.

The government's key...