Govt reviews West Asia crisis impact on MSMEs

Union Micro, Small and Medium Enterprises (MSME) Minister Jitan Ram Manjhi chaired a high-level review meeting with senior ministry officials on Tuesday to assess the potential impact of the evolving geopolitical situation in West Asia on India's small enterprises. Minister of State for MSME Shobha Karandlaje was also present at the meeting.

The meeting reviewed possible risks arising from disruptions in global supply chains, including the availability and pricing of raw materials, export-import operations, energy-related concerns, transportation and logistics bottlenecks, and MSMEs' working capital requirements. Manjhi directed officials to closely track developments and formulate timely measures to mitigate any adverse fallout on the sector.

The review assumes significance amid growing concerns over the impact of prolonged instability in West Asia on global trade routes, freight rates and energy markets.


Emphasising the sector’s importance to the economy, Manjhi described MSMEs as the backbone of India, citing their significant contribution to employment generation, manufacturing output and exports. He reiterated the government's commitment to protecting MSME interests and ensuring the sector remains resilient in the face of external challenges.