As per Kantar’s ITOPS 2022 study, which completes 27 years of tracking the MSME market in India and covering MSMEs across 48 cities of India, 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.
The pandemic has demonstrated the resilience of MSMEs, and more are looking to invest in their businesses as they believe the economy will continue to do well and be insulated from a potential global slowdown. This is reflected in the increase in the number of MSMEs defined as “wave-riders” (businesses that invest in line with the country’s economic growth to stay competitive in the market).
Similarly, these businesses are confident about their industry’s performance. While only 1 in 10 businesses were highly confident about this in 2021, more than three-quarters of businesses are hopeful for strong growth in their industry now.
It is worth noting that MSMEs have a long-term vision, with more than half confident in increasing revenue and executing their 5-year business plan. There is a growing interest in investing in technology and going digital, with many MSMEs investing heavily in these areas post-pandemic. Currently, there are few MSMEs in India that are not exploring digital technology for their business due to the benefits it has brought in recent years.
Discussing the latest findings from Kantar ITOPS study, Indranil Dutta, Vice President, Insights Division, Kantar feels that, “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.”
