New Delhi, Apr 12 (KNN) A recent report by UGRO Capital and Dun & Bradstreet highlights a robust recovery among India’s Micro, Small, and Medium Enterprises (MSMEs) following the COVID-19 pandemic.
According to the third edition of the MSME Sampark Report, 64% of MSMEs have resumed operations post-pandemic, with approximately 54% reporting over 10% year-on-year (YoY) growth in sales.
The study analysed over 45,000 MSMEs across seven sectors, including light engineering, food processing, electrical equipment, chemicals, auto components, hospitality, and healthcare.
It found that increased formalization and digitalisation have improved credit access, leading to better financial health. Notably, the debt-to-turnover ratio has improved, and gross non-performing assets (GNPAs) for MSMEs declined to 2.2% in September 2024, the lowest in 12 years.
Despite these positive trends, the report notes a slowdown in investments by Udyam-registered MSMEs, dropping from 61% in FY22 to 23% in FY24.
Additionally, while small firms remain optimistic, medium and large businesses anticipate slower domestic growth in early 2025. Export sentiment has also weakened amid geopolitical uncertainties and trade protectionism.
UGRO Capital’s Founder and Managing Director, Shachindra Nath, emphasized the importance of continued support for MSMEs, stating that the MSME Sampark initiative aims to enhance credit delivery and policy advocacy.
Dr. Arun Singh, Global Chief Economist at Dun & Bradstreet, highlighted improvements in MSMEs’ credit profiles, attributing the decline in GNPAs to better risk management and financial resilience.
Overall, the report underscores the critical role of MSMEs in India’s economic recovery and the need for sustained efforts to support their growth and stability.
(KNN Bureau)
