MSMEs contributed close to 40 per cent of all exports from the country and employ nearly 6 crore people which is next only to the agricultural sector. MSME is the best vehicle for inclusive growth, to create local demand and consumption. MSMEs cater to niche markets. The MSMEs of yesterday are the large corporates of today and could be MNCs of tomorrow.
Greater slack amplifies the downward pressure on inflation, although the quantitative effect is probably fairly modest given the flat slope of the Phillips curve. Because the pass-through of dollar appreciation to oil and food commodity prices is much higher than for most imports, dollar appreciation tends to depress overall PCE inflation by even more than it depresses core inflation.