In a country like India with a population size of about 1.3 billion, the Micro, Small and Medium Enterprises (MSME) sector has a vital role in the economy. It fosters entrepreneurship and generates large employment opportunities. As MSMEs absorb the surplus agricultural labour, they help reduce the problem of disguised unemployment in rural areas.
Yes, export prices look likely to fall, and indeed have already done so in a number of cases, but in US dollar terms they have, on average, been at relatively high levels for much of the last year or so (figure 4), and in New Zealand dollar terms they have been pushed up even further by the low level of the kiwi dollar (figures 5 and 6).