India’s MSMEs contribute 31.1% of GDP, account for 48.58% of exports and provide livelihoods to nearly 32.8 crore people. They are central to India’s economic story. Yet for millions of enterprises, growth remains constrained not by ambition, but by access—to capital, markets and business opportunities.
As India looks ahead, the conversation must move beyond creating more MSMEs and focus on helping them participate more effectively in the country’s growth journey. Connecting businesses to customers, supply chains, financing and digital commerce networks will be critical in determining which enterprises thrive in the years ahead.
India does not lack entrepreneurial energy. Every year, businesses emerge across sectors and geographies, serving local markets and creating employment.
However, many enterprises struggle to move beyond their early stages. While access to finance remains important, growth is often shaped by a broader set of factors, including market linkages, business networks, advisory support and operational efficiency. Strengthening these foundations can help more enterprises become durable, competitive businesses.
Access to finance remains one of the most significant barriers facing MSMEs. Many businesses have customers, purchase orders and expansion opportunities but remain constrained by working-capital gaps.
Seller financing deserves greater focus in this context. Timely access to liquidity enables enterprises to fulfil larger orders, manage payment cycles and invest with greater confidence. For many businesses, growth opportunities are often determined by whether capital is available when it is needed the most.
Yet capital alone is not enough. Businesses also need access to markets. Growth becomes difficult when enterprises are unable to connect with larger buyer networks, participate efficiently in supply chains or discover new demand beyond their immediate geographies.
India’s digital public infrastructure has transformed identity and payments. The next opportunity lies in extending the same principles to commerce and credit.
Platforms such as TReDS have demonstrated how targeted digital infrastructure can improve access to financing. At the same time, digital marketplaces and specialised B2B commerce ecosystems are helping businesses connect with customers, expand beyond local markets and participate more effectively in supply chains.
As supply chains become increasingly specialised and fragmented, MSMEs require ecosystems that simplify commerce, financing and market access. While broad-based digital infrastructure creates a strong foundation, businesses often need more tailored networks that address the unique requirements of specific sectors, geographies and supply chains. Regional and industry-focused commerce ecosystems can play an important role in connecting MSMEs to buyers, suppliers and financing partners in a more targeted manner.
The ability to discover demand, access buyers and transact efficiently can be just as important as access to credit. The next generation of commerce infrastructure should focus on reducing friction, strengthening market linkages and helping businesses unlock growth opportunities that were previously beyond reach.
The benefits of stronger commerce and financing infrastructure can be particularly significant for underserved segments of the MSME ecosystem. Women-owned enterprises account for 20.5% of MSMEs registered on the Udyam portal and contribute 18.73% of the employment generated by registered MSMEs. Yet access to capital, networks and markets remains uneven.
Expanding access to financing, digital marketplaces and supply-chain opportunities can help more women-led businesses participate fully in India’s growth story while generating broader economic value.
Technology can also become a force multiplier for growth. Artificial Intelligence is increasingly helping businesses optimise sales funnels, improve customer targeting and navigate conversion journeys more effectively. While growth strategies may differ across sectors and business models, AI can help MSMEs make better decisions, improve customer engagement and drive greater efficiency without requiring significant investments. The opportunity lies in ensuring that these capabilities become accessible to a wider base of enterprises rather than a select few.
As global supply chains continue to evolve and trade corridors face periodic disruptions, India has an opportunity to strengthen its position as a manufacturing and export hub. Realising that opportunity will depend not only on large corporations but also on the ability of MSMEs to participate more effectively in markets and value chains.
India’s MSMEs have already demonstrated extraordinary entrepreneurial energy. The next step is ensuring that they are connected to the financing, commerce infrastructure and market opportunities needed to realise their full potential.
Building those connections will be critical to creating a more competitive, inclusive and resilient MSME ecosystem for the decade ahead.
(The views expressed are personal)
This article is authored by Alok Mittal, co-founder and executive chairman, Indifi Technologies.
