India's MSMEs Face Cost Pressures Amid Economic Growth and Infrastructure Focus
India's MSME sector, contributing nearly 30% of GDP and employing over 110 million people, faces rising cost pressures due to geopolitical tensions affecting energy and logistics. Challenges include input shortages, stretched cash cycles, and increased working capital needs. Policymakers emphasize strengthening infrastructure, logistics, and operational capabilities alongside credit access. Concurrently, India's economy shows resilience with strong growth, supported by reforms, investments in infrastructure, and expanding private markets. Regional development initiatives and sustainable industrial practices are also highlighted as key to future growth.
