MSME Outlook

The Global Economy

World Bank¹ and IMF² projects strong recovery for global economy with growth projected at 5.6% and 6% respectively for Calendar Year (CY) 2021. The growth rates are projected to be moderate to 4.3% and 4.4% in CY 2022 as per World Bank and IMF respectively.

Domestic Economy

India’s GDP growth in FY 2021 is estimated at -7.3% on account of COVID-induced lockdown during FY, as compared to 4.0% in FY 2020³. Merchandise exports⁴ for FY 2021 stood at ₹21.50 lakh crore as compared to ₹22.20 lakh crore during FY 2020, a contraction of 3.13% on a year-on year (Y-o-Y) basis. Exports during the April-June quarter of FY 2022 jumped to a record US$95 billion – an increase of 85% over the corresponding period in FY 2021, and 18% over FY 2020⁵.

MSME Sector