4 min read.Updated: 06 Apr 2022, 01:39 AM ISTTulsi Jayakumar
A survey reveals sharp input cost escalation and we should help small businesses on many fronts beyond finance
Indian micro, small and medium enterprises (MSMEs) have a new challenge, with the high pass-through of the world’s ‘new normal’ inflation. Rates of inflation have been in excess of 5% in developed countries across the world. In January 2022, the year-on-year inflation rate for OECD countries rose to 7.2%, the highest since February 1991, while the rate for G-20 countries rose to 6.5%. Retail inflation in India has stayed above the psychological upper limit of 6% in calendar 2022 so far, while the wholesale price index (WPI) rate in February 2022, at 13.1%, has been more than double the retail inflation.