The Aftermath of the Pandemic or Financial Instability? MSMEs unable to claw back their margins to the pre-pandemic levels (11/12/2022)
The Aftermath of the Pandemic or Financial Instability? MSMEs unable to claw back their margins to the pre-pandemic levels
Unfavorable exchange rate, falling rupee value, or inability to pass on the high prices, nearly half (43%) of the small and medium businesses would not be able to achieve the pre-pandemic top lines. The report is based on 69 sectors and 147 clusters or two-thirds of the MSME universe, which logged an aggregate revenue of Rs 56 lakh crore, representing 20-25 percent of the GDP.
The depreciating rupee value affected sectors such as pharma, gems, and jewelry. Whereas high prices of commodities such as crude oil and milk affected sectors such as chemical, milk & dairy, and packaged foods.
As a ray of light – steel and crude prices are expected to drop by a whopping 9 – 10 percent. Subsiding geopolitical tensions created by the Ukraine war, correction in coking coal prices and proper disbursal of global demand would lead to the smooth functioning of the supply chain, globally.
