India's small businesses face existential crisis due to COVID-19: CRISIL
The Crisil report highlighted that the margins of small businesses will also contract by 200-300 basis points, especially for the micro-segment, which accounts for 32% of the overall MSME debt
- Jun 16, 2020,
- Updated Jun 16, 2020 12:54 PM IST
Small businesses in India are facing existential crisis due to the coronavirus-induced lockdown that could pose insurmountable challenges for them, according to CRISIL.
The credit rating agency has warned in its study that coronavirus crisis will knock off a fifth of the revenues of micro, small and medium enterprises (MSMEs), as the Indian economy is pegged to shrink 5% in FY21 owing to weak demand due to COVID-19 pandemic and the subsequent lockdown.
The report further highlighted that the margins of small businesses will also contract by 200-300 basis points (100bps=1 percentage point), especially for the micro-segment, which accounts for 32% of the overall MSME debt.
Small businesses in India are facing existential crisis due to the coronavirus-induced lockdown that could pose insurmountable challenges for them, according to CRISIL.
The credit rating agency has warned in its study that coronavirus crisis will knock off a fifth of the revenues of micro, small and medium enterprises (MSMEs), as the Indian economy is pegged to shrink 5% in FY21 owing to weak demand due to COVID-19 pandemic and the subsequent lockdown.
The report further highlighted that the margins of small businesses will also contract by 200-300 basis points (100bps=1 percentage point), especially for the micro-segment, which accounts for 32% of the overall MSME debt.