New Delhi, June 3 (IANS) Union Minister for Micro, Small and Medium Enterprises (MSME), Jitan Ram Manjhi, held a high-level meeting with senior officials to review the measures required to protect MSMEs from the adverse fallout of the West Asia crisis, according to an official statement issued on Wednesday.
The Minister directed the officials to closely monitor the evolving situation and develop timely and appropriate strategies to effectively address any potential challenges regarding the availability and prices of raw materials, impediments to exports, transportation and logistics, and working capital concerns of the MSME sector.
Addressing the meeting, the Minister underscored the critical role of the MSME sector in India’s economic growth, describing it as the backbone of the economy.
The Union Minister noted that the sector not only generates employment for millions of people but also makes a substantial contribution to the country’s manufacturing output and exports. He reaffirmed the Government’s unwavering commitment to safeguarding the interests of MSME entrepreneurs and ensuring the sector’s continued growth and resilience.
Manjhi further highlighted that under the leadership of the Prime Minister, through initiatives such as Aatmanirbhar Bharat, Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE), digital empowerment, and financial inclusion have strengthened the MSME sector’s resilience and global competitiveness.
Meanwhile, a Crisil report states that headwinds stemming from the ongoing conflict in West Asia will hit MSMEs in India hard this fiscal, impacting both revenue and profitability.
According to projections in Crisil Intelligence’s latest MSME Report, revenue growth will moderate to 7.5-8.5 per cent, down 100 basis points (bps) compared with fiscal 2026, while earnings before interest, tax, depreciation and amortisation (Ebitda) margin will decline 50-100 bps to 5-5.5 per cent.
The forecasts would have been more subdued but for the domestic gems and jewellery market, which is experiencing a value-led expansion, driven by a surge in gold prices, the report states.
The report, a twice-a-year publication that covers 69 sectors and 147 clusters representing aggregate revenue of Rs 75 lakh crore—approximately 20-25% of India’s GDP and two-thirds of the MSME universe—paints a sobering picture.
MSMEs are facing a dual challenge due to the West Asia crisis. First, production cuts and revenue losses due to reduced availability of raw material such as gas, and second, margin compression stemming from trade disruptions and limited pricing power to pass on increasing commodity and energy costs, the report states.
–IANS
sps/uk
