It is estimated that in terms of value, MSME sector accounts for about 45% of the manufacturing output and around 40% of the total export of the country which is next only to the agricultural sector.
For these reasons, it is imperative to build the resilience of both the financial system and the public finances vis-a-vis tail risks. In Section III, I first focus on the financial system, before turning to the fiscal situation in Section IV. III.