Trump Tariffs Rob MSMEs of Festive Fervour

INDIA'S MICRO, SMALL AND MEDIUM enterprises (MSMEs) are navigating a complex landscape this festive season, where a surging domestic demand sets off the challenges of the stiff 50 per cent tariffs imposed by the United States government.

- Abhishek Sharma

Festive activity traditionally boosts MSME operations and this year credit demand is projected to reach Rs 3.45 lakh crore in the third quarter of FY 2025, a 40 per cent increase over the previous fiscal. Tier- 2, Tier -3 and Tier - 4 towns are expected to account for over 70 per cent of this demand for credit. Fintech lenders like FlexiLoans anticipate a 50 per cent year-on-year rise in festive loan disbursements, driven by demand and targeted festive offers.