India’s micro, small and medium enterprises (MSME) sector is expected to rebound with a 15% to 17% growth in revenues for the financial year ending 2022 amid the country’s economic recovery and an increase in consumer demand, highlighted a study by Assocham-Crisil.
Recovery was observed over the last few months in sectors like construction, exports, commodities and consumption as COVID-19 restrictions were lifted by the government, according to the report.
India’s MSME sector is estimated to comprise some 63 million firms, employing over 11.1 million workers. The sector accounts for 27% of GDP and is key in employment, exports and lending opportunities, it said.
The sector was also the worst hit over the pandemic and the resulting lockdowns that followed.
The report also highlighted that the MSME sector expanded digitalisation efforts over 2021, which has enhanced customer experience, operational efficiency and workforce procedures and facilitates access to financial services.