India has ~6.33 crore micro, small and medium enterprises. The number of registered SMBs grew 18.5% YoY to 25.13 lakh units in 2020, from 21.21 lakh units in 2019. As of 2020, registered SMBs were dominated by micro enterprises at 22.06 lakh units, over 18.70 lakh in 2019, while small enterprise units went up from 2.41 lakh to 2.95 lakh. Midsized businesses marginally increased from 9,403 units to 10,981 units in the same period.
SMBs and MSMEs currently employ >130 million people and contribute ~6.11% to the India’s manufacturing GDP, and 24.63% of the GDP from service activities as well as 33.4% of manufacturing output.
This case study from IBEF focuses on the readiness of Indian SMBs towards digital adoption and the potential that exists in the country.