MSMEs are moving towards recovery with full enthusiasm. The reports from Dum & Bradstreet and UGRO Capital released new numbers marking progress in the MSMEs business post-pandemic. The reports show a clear picture of the MSME’s YoY growth. 50% of the MSMEs generated a YoY growth of more than 10% from July 2021 to March 2024. There are several reasons behind this growth in the MSME sector. The major reason is the increasing availability of credit. It has become possible with the help of government and big companies’ initiatives. Let us dive deeper into MSME’s 2024 growth below.
How Far MSMEs Grew Post-Pandemic?
2024 is going to end. It will be almost 3 years since the pandemic. How far have the MSMEs grown post-pandemic? According to the reports, half of the MSMEs have caught the full-speed recovery. Credit was a big challenge for MSMEs some time ago. They were unable to take risks because of a lack of cash availability. However, the government has contributed a lot to assisting MSMEs financially. They were able to grow at their highest potential with the credit scheme. The women in MSMEs also had a lot of benefits through the schemes.
The report showing MSMEs growth is based on the performance of 39,000 MSMEs. 12,000 MSMEs in it come under the micro-segment. All the sectors among MSMEs are taking complete advantage of the credit. However, light engineering, electrical equipment construction, and food processing have been among those who took the most advantage.
They showed incredible growth using these schemes. Dun & Bradstreet India’s managing director Avinash Gupta mentions that MSMEs need to change with changing times. It has to focus on innovation, technology, and new strategies for its continuous survival and growth. The consumption patterns of consumers tend to shift. Thus, their flexibility will help them survive further.
New Udhyam registration on the MSME portal shows clear signs of the sector’s growth. In 2029, the projections are that the country’s GDP will double. The government is forming policies for different segments of MSME. In the current financial year, the government is focusing on the manufacturing segment of the MSMEs.
The labour-intensive manufacturing plant will contribute to increasing exports from the country. It will also be beneficial in promoting domestic manufacturing. There will be increased labour and work opportunities. If we talk about employment generation, a lot of women lead MSMEs are also providing new employment opportunities. This will contribute to India’s overall development. Stay tuned for more information.