Indian Tech MSMEs Set to Skyrocket: Revenue Projections of $35-40 Billion by 2030 Show Immense Growth Potential

With a staggering contribution of 30% to the country’s GDP, the Micro, Small, and Medium Enterprises (MSME) sector stands as a powerful engine driving India’s economic growth. In particular, the role of manufacturing MSMEs emerges as a significant catalyst in India’s aspirations as a burgeoning economic powerhouse. On this MSME Day, esteemed Indian businesses unite in hailing the sector’s untapped potential and call for increased government attention to propel India toward its vision of becoming the world’s third-largest economy by 2027.

Shruti Jain, CSO, Arihant Capital, said “If India needs to grow, MSMEs must grow and strengthen. For this, we need an ecosystem that provides MSMEs with the necessary support and tools they need to survive and thrive in the current challenging environment. While financial support is important for MSMEs at every stage of growth, the most effective way to support them is by pairing it with advisory services and capability-building. For MSMEs to be future-ready, they need to keep up with digitization, put in place a decarbonization strategy (and implement it timely), and focus on securing the right talent (and upskilling them),”

Vidushi Kapoor, CEO Process9 and a Nasscom’s SME Council member expressed her unwavering support for fellow MSMEs, stating, “We stand united with our fellow MSMEs, mutually nurturing one another’s dreams and aspirations. Comprehending their obstacles, we remain committed to creating a supportive environment that empowers their businesses to flourish. According to the latest data from NASSCOM, Indian tech MSMEs are projected to yield an impressive revenue range of $35-40 billion by 2030. As we observe World MSME Day, it is imperative to acknowledge the crucial role played by the government in fostering the growth of MSMEs through their strategic policies and digital initiatives. Measures such as improving access to timely and sufficient credit, the introduction of the Udyam portal, preference given to MSMEs in government procurement, and the provision of subsidies during the pandemic have proven to be vital lifelines for Indian MSMEs”.

Karan Bhargava, Director of Bhargava Phytolab & CEO Homoeo Amigo, said,” MSMEs are the engines of economic progress, contributing significantly to GDP, exports, and overall industrial development. They play a crucial role in bridging regional disparities, empowering local communities, and ensuring inclusive growth. These enterprises, often helmed by visionary entrepreneurs, possess the potential to unleash unparalleled economic transformation, igniting a wave of innovation, and creating a vibrant ecosystem of opportunities. Therefore it is vital that government introduces more policies for this segment so that it can contribute to building a strong and resilient economy.”

Ankit Shyamsukha, CEO, ICA Edu Skills, and, Founder IDCM, said, “ Let’s celebrate the resilient and innovative spirit of MSMEs, as they are the backbone of our economy, contributing 30% to industrial output and creating 40% of new jobs annually. Governments, financial institutions, and society must collaborate to create an enabling ecosystem, ensuring easier access to finance, fostering innovation, and promoting digital literacy. Together, we can unlock the full potential of MSMEs, driving economic growth, creating opportunities, and shaping a prosperous future for all.”

Prashant Gupta, Founder & CEO, Caerus3 Advisors & Think-Tank, said “We proudly acknowledge the immense significance of Micro, Small, and Medium Enterprises in the Indian economy. These dynamic and resilient entities are the lifeblood of our nation’s economic landscape, driving innovation, fostering entrepreneurship, and generating substantial employment opportunities. Their contributions are not only limited to economic growth but extend to fostering social development, promoting sustainable practices, and driving innovation across sectors. Together, let us build an ecosystem that nurtures and harnesses the power of MSMEs, propelling India towards a brighter and more prosperous future,”

Karan Panchal, MD & CEO, Tikku Condiments, said  “As we commemorate MSME Day, let us reaffirm our commitment to supporting and nurturing these invaluable pillars of our economy. By fostering an enabling environment, facilitating access to finance, promoting technological advancements, and simplifying regulatory processes, we can empower MSMEs to thrive and flourish. Their success is intertwined with the prosperity of our nation, and it is incumbent upon us to provide them with the necessary tools, resources, and support they need to realize their full potential,”

Anoop Singh, Director Operations, Red Orchid Spa, said “As India charts its course towards prosperity, embracing the MSME sector’s immense potential is of paramount importance. We call for comprehensive policy interventions, strategic investments, and streamlined regulatory frameworks that will enable MSMEs to thrive and contribute even more robustly to India’s economic ambitions. On this MSME Day, let us collectively commit to fostering an ecosystem that empowers and uplifts the sector, elevating India towards a future of unparalleled economic growth and sustainable development,”

Mr. Arun Nayyar, Managing Director & Chief Executive Officer, NeoGrowth, said  “On World MSME Day, we celebrate the unwavering determination of Micro, Small and Medium Enterprises (MSMEs) and their indispensable contribution to fuelling India. The MSME sector is steadily embracing digital means of conducting business. NeoGrowth’s latest study on ‘Decoding Digital Payments – A Retailer Perspective’ revealed that 70% MSMEs believe UPI will be the driver of retail sales. This shift towards digital payments has become a game-changer, revolutionizing the landscape, and creating tremendous opportunities for digital lenders to serve the credit needs of India’s 6.3 Crore MSMEs.

 As we move forward, 2023 will be a crucial year for these enterprises on their journey toward India’s vision of a $5 Trillion economy. Access to a robust digital ecosystem will catalyze MSME lending, unlocking unprecedented growth and prosperity for both digital lenders and MSMEs. At NeoGrowth, we are proud to empower MSMEs through data and innovative technologies at the same time by nurturing their entrepreneurial mindset and fostering resilience – all integral elements in forging an inclusive, prosperous, and transformative future for them.

Mr. Vishal Rally, Senior Vice-President –  Product, Commercial and Marketing, Tata Teleservices, said  “On MSME day, we recognise and celebrate the immense contribution of MSMEs to the economic growth  of the country with their entrepreneurial spirit and creating opportunities for communities. At Tata Tele Business Services (TTBS) we are committed to supporting MSMEs in their growth and success. We understand that in this digital age, they require advance technology solutions to compete effectively in the market and grow their business . With our customer-centric approach and cutting-edge solutions, we empower MSMEs to simplify and accelerate their digital transformation journey, harness the true potential of their workforce, and unlock remarkable innovation. Together, we strive to forge a digital ecosystem that champions MSMEs’ growth, resilience, and prosperity, propelling India’s economy to new heights.”

Mr. Joyjeet Bose, Sr. Vice- President, Tata Teleservices, said “We recognize the pivotal role of Micro, Small, and Medium Enterprises (MSMEs) in driving country’s economic growth, creating employment opportunities while nurturing local communities. We understand the unique requirements and challenges faced by MSMEs in today’s digital landscape and as their trusted digital enabler guide them through the digital transformation journey. At Tata Tele Business Services (TTBS), we are committed to providing robust digital infrastructure to empower MSMEs compete on a global scale. We remain investible in cutting-edge technology, offering innovative and affordable solutions, and delivering unmatched customer experience  to meet the evolving needs of the MSME sector.”

Samik Roy, Executive Director, Corporate, Medium, Small Business, Microsoft India, said “A key indicator of how any organization will perform during times of uncertainties or adversities, is its digital maturity. The last few years have proved that MSMEs, like all other businesses, must think beyond the ‘now’ to stay resilient and agile in today’s digital era. While working with thousands of SMBs across the country, we have learned that their most pressing challenges revolve around security, productivity, efficiency and growth. MSMEs can unlock their potential by moving to a secured cloud and deploying cost-effective solutions that not only address their current challenges but can also scale in functionality as the business grows. As a longstanding partner to this ecosystem, we are focused on democratizing technology so that its benefits can reach the smallest of the businesses and empowering them with the right solutions and skills to accelerate their digital transformation journey.”

Mr Subhrangshu Neogi, Executive Director and Co-Founder, Escrowpay, said “MSMEs and emerging businesses are the backbone of the economy. The not so good news is the huge credit gap that exists for this community coupled with challenges around collections and cash flow imbalances, which are impediments to their growth. The good news however is that the current ecosystem including but not limited to policy level changes ensure that the unserved and underserved are able to access formal credit including forms of non collateralised credit and other digital offerings that help them overcome their growth challenges. The close collaboration between fintechs and traditional trusted large legacy banks and financial institutions will go a long way in ensuring a vibrant and enabling ecosystem, backed by compliances and necessary guardrails”

Sandeep Menon – Founder, Managing Director & Chief Executive Officer, Vastu Housing Finance said “India has made remarkable progress in financial inclusion, particularly in integrating MSMEs into the organised sector, owing to various Govt initiatives and digitization efforts. MSMEs are the backbone of India’s growth. However, there remains a substantial gap to be bridged for credit-underserved MSMEs. Small businesses need innovative servicing and underwriting approaches that enable them to procure finances for building thriving businesses. Empowering these entrepreneurial ventures is key to shaping the future of India.

80% of our 60k+ customers are self-employed or belong to the MSME industry, operating in more than 50 different sectors.  We are happy to be at the forefront of this transformative movement, bridging the credit gap and fuelling the growth of MSMEs.”

Nirav Choksi, Co-founder and CEO at CredAble said  “FinTechs have emerged as catalysts for Indian MSMEs, offering personalized services beyond traditional banking. They address specific pain points and fuel business growth. Cash flow optimization is a key area where FinTechs excel. Leveraging advanced algorithms and data analytics, they provide real-time insights, empowering informed decisions, revenue optimization, and effective cash flow management. Automating accounts receivable and payable processes is another vital role played by FinTechs. Through user-friendly platforms and seamless integration, they streamline invoicing, payment reconciliation, and financial reporting, enhancing operational efficiency and fostering stronger relationships.

Moreover , fintechs provide simplified access to digital banking, online lending, and invoice financing, streamlining financial operations for MSMEs. By digitizing processes and reducing bureaucratic hurdles, they enable businesses to focus on core activities while expanding their financial options. Overall, FinTechs possess the potential to revolutionize Indian MSMEs’ growth trajectory. With their comprehensive services in cash flow optimization, AR/AP automation, and financial operations streamlining, they empower enterprises in a competitive landscape. As FinTechs evolve, their role in supporting MSMEs’ growth aspirations will become even more vital.”

Mr. Debarshi Dutta, Co-founder & CEO at AyeKart said, “Fintech is a transformative force that revitalizes small businesses. With a profound understanding of their pain points, Fintech providers offer personalized services tailored to the unique challenges faced by these enterprises. Fintech empowers businesses to focus on their core activities while expanding their financial horizons. Through comprehensive offerings such as optimizing cash flow, embracing automation, and providing innovative financial solutions, Fintech becomes a trusted partner in driving the success and growth of MSMEs, paving the way for a brighter and more prosperous future.”

Vijay Malhotra, Chief Sales Officer & Co-Founder SahiBandhu, said “MSMEs are the backbone of India’s economy, fostering innovation, creating employment opportunities, and driving inclusive growth. On this occasion of MSME Day, let us celebrate the indomitable spirit of Indian entrepreneurs who fuel the nation’s progress. Their resilience, perseverance, and dedication inspire us all. It is through their vision and hard work that we witness the transformative power of small and medium enterprises. SahiBandhu Gold Loans is here to simplify the loan application process, offer competitive interest rates, and ensure faster disbursal of funds by streamlining the borrowing experience, we enable MSMEs to meet their working capital needs efficiently, fueling their growth and contributing to India’s economic development.
Today, we reaffirm our commitment to empowering MSMEs, providing them with the necessary support, and unlocking their true potential. Together, we can build a prosperous and sustainable future, where every MSME thrives, contributing to India’s development.”

Sandeep Menon – Founder, Managing Director & Chief Executive Officer, Vastu Housing Finance, said  “India has made remarkable progress in financial inclusion, particularly in integrating MSMEs into the organised sector, owing to various Govt initiatives and digitization efforts. MSMEs are the backbone of India’s growth. However, there remains a substantial gap to be bridged for credit-underserved MSMEs. Small businesses need innovative servicing and underwriting approaches that enable them to procure finances for building thriving businesses. Empowering these entrepreneurial ventures is key to shaping the future of India.
80% of our 60k+ customers are self-employed or belong to the MSME industry, operating in more than 50 different sectors. We are happy to be at the forefront of this transformative movement, bridging the credit gap and fuelling the growth of MSMEs.”

Manish Shah, Managing Director and Chief Executive Officer, Godrej Capital, said  “We recognize the vital role and remarkable growth of the MSME sector in India, which not only outpaces the overall economy but also contributes 30% to India’s GDP, 45% to manufacturing, 40% to exports, and provides employment to over 113 million people. This accelerated growth can be attributed to government initiatives, digital transformation, and increasing demand for goods and services.

At Godrej Capital, we are fully committed to supporting the thriving MSME sector. With our strong focus on the MSME segment, we have witnessed first-hand its tremendous growth potential. Through our comprehensive financial solutions and strategic support, we fuel growth and contribute to the sector’s progress. Our tailored digital platform, ‘NIRMAAN,’ empowers MSME owners to leverage initiatives, embrace digital transformation, and seize opportunities.

As we commemorate MSME Day, let us collectively work towards unlocking the full potential of the MSME sector, fostering economic prosperity, and shaping a brighter future for India.”

Pramit Joshi, Senior Director, Moglix, said “The MSME industry in India is witnessing several ongoing trends that shape its landscape. These include digital transformation, e-commerce adoption, focus on innovation and R&D, sustainability and green initiatives, government support and initiatives, export potential, emergence of new sectors, and collaboration and networking.

The MSME industry in India offers a wide scope for growth and development. It contributes significantly to the country’s economy by generating employment, promoting entrepreneurship, and fostering inclusive economic development. With government support, technological advancements, and opportunities in emerging sectors, the MSME industry has the potential to expand its market reach, enhance competitiveness, and contribute to India’s GDP growth.”