India’s 63 million Micro, Small and Medium Enterprises (MSMEs) contribute a significant 29 per cent to its GDP and 44 per cent to exports and thus are integral to the country’s journey towards becoming a ‘Viksit Bharat’. However, these businesses have faced successive disruptions, beginning from demonetisation in 2016. The Covid-19 pandemic and then geopolitical disturbances like the Russia-Ukraine war, Israel-Hamas conflict and Red Sea crisis have led to business closures, supply chain disruptions, logistics cost spikes and volatile input costs. Consequently, many MSMEs faced losses due to damaged inventory and forgone sales. “In today’s globalised environment,” notes Anil Bhardwaj, secretary-general, Federation of Indian MSMEs, “institutional responses must consider the impact of geopolitical developments on small businesses.” And that precisely is the task that Jitan Ram Manjhi and his ministry have to embark on forthwith. - EndsPublished By: Aditya Mohan WigPublished On: Jun 17, 2024 04:04 IST
