The world economic order has been witnessing a shift where the so-called developed economies are sluggishly moving while the developing economies are recording staggering growth benchmarks. India, the fastest-growing economy in the world at present, is an example of the new world economic order. With the rapid adoption of cutting-edge technologies, cost-effective while efficient human resources, and its micro, small, and medium enterprises (MSMEs) at the driver’s seat, India continues to trail the path to growth.
In the past decade, India has witnessed a surge in the number of MSMEs despite the infamous Covid pandemic. One of the major contributing factors to it is a healthy entrepreneurial culture that’s on the rise in the country. The rapid digital adoption, cheap internet costs, policy reforms, and government-run programs like Make in India, Made in India, Startup India, and more, have pushed the ease of doing business while developing a healthy startup culture. Additionally, with campaigns like ‘Vocal for the Local’ and ‘Make in India for the World’ the government has proactively helped boost micro small and medium businesses.
Well, India is set to remain the fastest-growing economy for the next three years, as the latest report by S&P Global Rankings stated. The report highlighted that the country’s growth forecast remains unchanged for the present fiscal at 6 percent while it’s expected to see an upshift to 6.9 percent in the 2025-26 fiscal. On August 2nd, 2022, Union Finance Minister Nirmala Sitharaman distinctly laid out how the Indian economy is in a much better position than many developed ones. And, it’s no new knowledge that MSMEs in India hold the lion’s share in the country’s gross domestic product (GDP). Apart from being the largest contributors to the nation’s GDP, MSMEs also open up a huge number of employment opportunities. Meanwhile, these enterprises have also played a key role in the industrialisation of the country’s rural areas that too in a cost-effective manner. Moreover, MSMEs have accounted for nearly 40 percent of India’s total exports.
Technology has played a key role in empowering businesses to survive the Covid crisis and bounce back with a new digital avatar. The digital transformation not only enabled businesses to enhance their capacities and efficiencies but also opened opportunities to newer untapped markets. Be it MSMEs or global giants, all took the digital route that rejuvenated their businesses. However, low internet and manufacturing costs, agility, innovative approach, and rapid adoption of digital, gave India an edge.
MSME’s take
As we observe World MSME Day today, Saahil Goel, CEO and Co-founder of Shiprocket says, “At the core of Shiprocket lies a profound conviction in the immense potential of MSMEs and our unwavering commitment is to empower enterprises through technology-driven solutions, serving as their growth partners. On World MSME Day, we seize the opportunity to celebrate the tremendous force of over 63 million MSMEs, which serves as the powerhouse of India. We firmly believe that in the coming years, MSMEs will be a pivotal driver of the Indian economy, playing a major role in realising the dream of India@100.”
“We firmly believe in the vast potential of MSMEs to be a key driver of the Indian economy in the coming years. We are dedicated to empowering MSMEs across India with fintech solutions and enabling them to thrive in the dynamic landscape. We admire the unstoppable spirit of entrepreneurs and small business owners and believe that their contribution will be pivotal in making India a global leader,” says Raman Khanduja, Co-Founder and CEO, Mintoak.
While addressing the role of technology in helping MSMEs to grow, Biju Velayudhan, CIO, G Kuppuswamy Memorial Hospital, Coimbatore shares his view saying, “Once technology was a supporter for MSME and today it is in the driving seat. The clear differentiator of any future business just depends on the speed of adoption of technology.”
“We are seeing new entrepreneurs and startups in the Indian and global ecosystem, all thanks to technology. Areas like e-commerce, artifical intelligence, automation, fintech, cybersecurity, gaming, logistics, communications, and more have accelerated the MSME sector to leapfrog to Industry 5.0,” adds Tarun Kumar, CEO, Glocal Technology Solutions.
Further, on the technology row, Girish Rowjee, Co-founder & CEO, GreytHR highlights, “The adoption of HR tech has brought significant benefits to MSMEs, empowering them to thrive in the post Covid era. As being a leading provider of HR tech solutions we can say that by embracing technology-driven solutions, these enterprises have revolutionised their work processes and created a positive and efficient workplace for their employees.”
The journey ahead
The development of MSMEs is crucial for the nation’s economic development and technology holds the key to boosting the sector in a big way. Looking at the evolution of businesses and the changing market demands, it is impossible to avoid digital processes. Hence, MSMEs need to pace up technology adoption while inducing solutions like automation and generative AI-based tools to match the global pace of growth.