Ahead of Budget 2023 for the financial year 2023-24, Micro, Small & Medium Enterprises (MSMEs) in India are quite upbeat about their business and Indian economy, despite softening of the global economy.
According to Kantar ITOPS 2022 study, the pandemic had hit the MSME businesses hard, but the segment has bounced back and is currently extremely positive about the business and Indian economy despite worry of tough global economic scenario.
Meanwhile, the Economic Survey 2023, on Tuesday stated that the credit growth to the MSME sector was over 30.6 per cent on average during Jan-Nov 2022.
The Kantar study said that the pandemic has proven the resilience of the MSMEs and more MSMEs are also looking to invest in their business than in the past as they feel that economy will continue do well and somehow be insulated from probable global slowdown.
This is evident from the fact that the MSMEs that are defined as “wave-riders” (Businesses that invest in-line with the economic growth of the country in order to stay competitive in the market)) has increased too, the study added.
These businesses are confident about their industry doing well. While only 1 out of 10 businesses were extremely confident about this in 2021, the study said that more than 3/4th of the businesses are hopeful of a strong growth in their industry now.
The study stated that looking at the current scenario, it is important to mention that the current vision of MSMEs are not myopic one. More than half of the businesses are confident about increasing their revenue and executing their business plan for next 5 years.
It is worthy to mention that there is a very keen interest on investing in technology and going digital is growing.
Kantar has noticed that they have started investing heavily on these areas post pandemic and currently, there are very few MSMEs in India that are not exploring digital technology for their business. This is because of the demonstrable benefit that digital and technology has brought forth during the last couple of years.
Indranil Dutta, vice president, insights division, Kantar, said, “While MSMEs have bounced back from COVID, it is important for them to continue with this positive mindset. It will only prevail if positivity gets translated into higher revenue and profitability."
“Given MSMEs are the lifeline of Indian business economy with contribution of 99.8% to all businesses in India and contributing to almost a third of the total GDP of the country, significant responsibility lies with government to help them grow. As the budget for FY 2023-24 is just round the corner, I am quite hopeful that Indian government shall continue to instill confidence in such businesses by providing attractive schemes and roadmap to flourish."
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