Centre Reviews West Asia Impact on India’s MSME Sector

Addressing the meeting, the Minister highlighted the critical contribution of MSMEs to India's economic growth and employment generation.

The Ministry of Micro, Small and Medium Enterprises (MSME) has undertaken a comprehensive review of the possible impact of ongoing geopolitical developments in West Asia on India's MSME sector, with a focus on supply chains, exports, logistics and raw material availability.

The review was chaired by Union MSME Minister Jitan Ram Manjhi along with Minister of State for MSME Shobha Karandlaje during a high-level meeting held at Kartavya Bhavan in New Delhi on 2 June 2026. Senior ministry officials participated in the discussions, which examined potential risks facing small businesses amid uncertainty in global markets.

Focus on Supply Chains and Raw Material Availability

During the meeting, officials assessed several areas that could be affected by disruptions linked to developments in West Asia. The review covered the availability and pricing of raw materials, possible interruptions in global supply chains, export and import activity, transportation and logistics challenges, gas-related concerns and access to working capital for MSMEs. With many small and medium enterprises dependent on imported inputs and international markets, the ministry sought to evaluate potential vulnerabilities and prepare suitable responses if conditions worsen. Manjhi directed officials to maintain close monitoring of the evolving situation and develop timely strategies that can help businesses navigate any emerging challenges.

MSMEs Described as Backbone of the Economy

Addressing the meeting, the Minister highlighted the critical contribution of MSMEs to India's economic growth and employment generation. He noted that the sector supports millions of livelihoods across the country while making a substantial contribution to manufacturing output and exports. According to Manjhi, protecting the interests of MSME entrepreneurs remains a key priority for the government, particularly during periods of global economic uncertainty. He reiterated the government's commitment to ensuring that small businesses continue to operate smoothly and remain resilient in the face of external challenges.

Government Highlights Resilience Measures

The Minister pointed to several initiatives launched under the leadership of Prime Minister Narendra Modi that have strengthened the MSME ecosystem in recent years. These include the Aatmanirbhar Bharat programme, the Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE), digital empowerment initiatives and measures aimed at expanding financial inclusion. Officials believe these interventions have improved the sector's ability to withstand economic shocks while enhancing its competitiveness in domestic and international markets.

The ministry indicated that it will continue engaging with stakeholders and monitoring developments closely to ensure that any emerging concerns are addressed promptly. As geopolitical tensions continue to influence global trade and supply chains, the government aims to maintain stability for India's MSME sector, which remains a vital pillar of the country's economic and industrial growth.