MSMEs Struggle As India’s Q2 Growth Slowdown To 5.4 pc

KNN India - MSMEs Struggling Amid Economic Slowdown: India’s MSME sector is facing significant challenges as the country’s GDP growth slowed to 5.4% in Q2, 2024. Small and medium enterprises (SMEs) are particularly vulnerable to rising input costs, liquidity issues, and delayed payments from larger businesses. With limited access to credit and fluctuating demand, MSMEs are finding it increasingly difficult to maintain operations. The government’s support measures, including credit guarantee schemes, have not been sufficient to address the sector’s funding gaps. Experts call for more targeted interventions, such as tax relief, faster payments, and infrastructure support, to help MSMEs navigate this difficult period and continue their vital contribution to India’s economy.