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



110million people

Employment provided


Contribution towards all-India GDP in FY 2019


Contribution in all-India Export (in US$ terms) during FY 2020

Retail and Wholesale trade also included in MSME for the purpose of Priority Sector Lending benefits.

1 Global Economic Prospect, June 2021

2 World Economic Outlook, April 2021

3 Provisional estimates of GDP for Q4, FY 2021

4 India’s Foreign trade PIB, March 2021

5 India’s Foreign trade PIB, June 2021