Data: Almost Half of India’s MSMEs Plan to Add Tech

Small businesses in India are leading the charge to digitize, according to a Sunday (March 6) Economic Times report.

That comes as many micro-, small- and medium-sized enterprises (MSMEs) are switching over to new technology to help with costs, drive productivity and reach more customers.

Citing the India Business Spend Indicator report, which surveyed numerous smaller companies in the region, the Economic Times report noted these businesses are angling to improve their technological capabilities.

Per the report, 42% of micro-sized companies, 57% of small-sized companies and 53% of medium-sized companies are looking at these kinds of solutions. The report also noted that 40% of smaller businesses have automated their sales and 28% have done it for purchase sales.

These companies, according to the report, have been driving up the digitization of B2B processes, and there’s been more popularity for digital services in general. The report also noted that India is unique because its population skews very young — more so than many others — and this has come with a big pool of skilled workers. There’s also been a lot of growth and socioeconomic indicators.

It all comes as business has been prodded by the government to increase their digital adoption. B2B digitization is on the rise, according to the report, and was accelerated because of the increased presence of mobile and internet penetration in the country.

According to Economic Times, businesses realized in the wake of the pandemic that they had to keep up with world events and the needs of the consumer, so going digital was helpful.

PYMNTS wrote that Indian banks might see more lending and interest margins this year, with the country’s economy recovering from the pandemic.

Read more: Indian Banks Might See More Loan Growth as Economy Recovers, Report Says

Bank credit has come up to 9.2% year over year as of December 2021, citing Reserve Bank of India data. Per the report, the World Bank thinks this trend will continue.

“Indian banks are ready to shift into a growth phase, just in time to meet rising demand as the country’s economy recovers,” said Nikita Anand, associate director for credit risk at S&P Global Ratings. “Faster loan growth will be bolstered by improving asset quality and a normalization in credit costs over the next 12-18 months.”