MSMEs share in India’s GDP fell by 4% in FY21: MoS MSME

New Delhi, July 29 (KNN) During the first year of the covid-19 pandemic the share of MSME sector in India’s gross domestic product (GDP) lowered from 30.50 per cent to 26.83 per cent, said MoS for MSMEs Bhanu Pratap Singh Verma in a written reply in Lok Sabha on Thursday.

Earlier in FY18 the share of MSME in the GDP had grown from 29.25 per cent in FY17 to 29.69 per cent.

He was replying to a question on the contribution of the MSME sector to GDP.

The statistics of the last fiscal year 2021-22 wasn’t shared by MoS MSME.

Rating agency Crisil had reported in June that due to the covid-19 pandemic over a quarter of Indian MSMEs had lost their market share of more than 3 per cent.

While half of them suffered a contraction in their earnings before interest, tax, depreciation and amortisation (Ebitda) margins because of a sharp rise in commodity prices last fiscal, compared with the pre-pandemic (FY20) level, said the report.  (KNN Bureau)