‘MSMEs May Add $300 Billion To India’s GDP By 2025 Should They Forge Strategic Partnerships In Time’

Ease of Doing Business for MSMEs: We estimate India’s GDP between -8 per cent and -15 per cent in Q3, between 2 per cent and -4 per cent in Q4, ending 2020 anywhere between 1 per cent and -10 per cent. For the three quarters from April, MSMEs are likely to have contributed between $600 billion and $900 billion to India’s GDP. One of the largely unlevered assets is partnerships. It is ironic that in adversity, partnerships should be an instinctive response to help each other and make each other win but in reality, we see a different picture.

All partnership activities in the model depicted in the exhibit 1 (X-axis represents the driver of partnerships and Y-axis represents the ladder of it), except for conflict resolution which has increased in transactions, have dipped or remained stagnant, if one studies the period between Jan 2020 and September 2020.

The evidence suggests that M&A activity during Jan and Sep 2020, declined between 25 per cent and 80 per cent across the globe. Take partnerships between customers and suppliers, take trade ties between countries, take transactions in business, as usual, take constructive alliances to shape the future together, one sees the incidence of partnerships dipped. It is not only a corollary to the subdued or negative economic activities. There is more to it.

Source: Financial Express

Comments are closed.