MSME Sampark: Unveiling Growth Paths for India's Small Enterprises

MSME Sampark, a report by Dun & Bradstreet and UGRO Capital, highlights the critical role MSMEs play in India's economic development. The report underscores post-pandemic recovery trends, growing loan sizes, and the importance of digitalisation for enhanced credit access, reflecting MSMEs' resilience and potential in contributing to India's GDP.

Dun & Bradstreet, alongside UGRO Capital, has released the second edition of the MSME Sampark report. This study underscores the pivotal contribution of micro, small, and medium enterprises (MSMEs) to India's economy, accounting for nearly 30% of its GDP, and providing employment to over 150 million people.

The report investigates the performance of over 39,000 MSMEs across seven key sectors, detailing post-pandemic recovery. Over half of the businesses saw more than 10% year-over-year growth in sales from May 2021 to March 2024. It emphasizes formalisation and digitalisation as vital for credit access and business expansion.

Key findings highlight healthy credit penetration, particularly in Light Engineering, Electrical Equipment, and Food Processing. The study accentuates the expansion of loan sizes, increased involvement of women entrepreneurs, and robust government initiatives targeted at technological adoption within the MSME sector.

(With inputs from agencies.)