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GDP contraction would endanger MSMEs: Crisil
News:
- The rating agency Crisil expects a 5% contraction in Indian economy because of the impact of the coronavirus pandemic.
More from the Crisil report:
- A 5% contraction in GDP during 2020-21 may lead to a 15% fall in corporate India’s revenues.
- The contraction poses an “existential threat” for small businesses.
- MSME sector will have to face a sharper decline in revenues of up to 21%, while operating profit margins will narrow to 4-5%.
- There were gains to be made out of lower commodity prices but the weak demand in the economy would impact the small business.