Crisil expects West Asia conflict to cut MSME revenue, margins
India's micro, small, and medium businesses are in for a challenging fiscal year as the West Asia conflict pushes up energy prices and disrupts trade.
Crisil's report expects MSME revenue growth to dip to 7.5% to 8.5% in FY27, down from FY26 (the previous fiscal year, 2025-26), with profit margins shrinking too.
Energy costs squeeze Morbi, Firozabad, chemicals
Industries relying heavily on energy (like Morbi's ceramic tile makers and Firozabad's glass sector) are hit hardest.
Morbi could see revenue growth plunge from 9% to 11% in FY26 to just 1% to 3% in FY27, while Firozabad's glass production has already fallen by 40%.
Chemical companies dependent on imports face even steeper margin cuts, and road construction plus packaged food businesses aren't spared either as fuel and packaging costs climb.