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With a majority of MSMEs expressing confidence in India’s economy improving in 2024, approximately 44 per cent of them plan to expand their employment base, reflecting a positive sentiment towards creating a conducive business environment, according to NeoGrowth, an MSME-focused NBFC. The study has analysed responses from around 3,000 MSMEs from over 25 top cities across India.
Data show that 90 per cent of MSMEs are confident that India’s economy will be resilient or will further improve in 2024. Further, supported by government initiatives to enhance ease of doing business and a strong consumer demand, 91 per cent expect their profits to increase in 2024.
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MSMEs in the wholesale/trading sector are leading the charge on economic optimism, with a resounding 95 per cent expressing confidence. Supportive government policies and regulations coupled with robust domestic and global demand further fuel this sector’s unwavering optimism.
Retail MSMEs are very optimistic as 94 per cent of MSME retailers expect an increase in profits in 2024. Also, 58 per cent of MSMEs in the trading/wholesale segment expect their profits to increase by over 30 per cent.
Additionally, 75 per cent of wholesale and trader segment MSMEs remain bullish on consumer demand in 2024, echoing the optimism expressed in 2023. With respect to locations, Delhi is most optimistic with 87 per cent of surveyed MSMEs anticipate a surge in consumer spending. Bengaluru and Pune follow suit with impressive levels of confidence.
Across sectors, nearly 60 per cent anticipate the need for credit in 2024, with wholesale/trading and services sectors leading at 64 per cent. Key considerations for loan providers include quick disbursals, digital processes, and favourable terms. Delhi MSMEs prioritise digital processes, while those in Pune value fast approvals and disbursals.
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Notably, the appetite for loans seems strongest in metropolitan hubs such as Bengaluru (88 per cent), Pune (87 per cent), and Delhi (84 per cent).
A majority, 60 per cent, plan expansion in 2024, particularly through new stores and offerings. Bengaluru, Delhi, and Pune MSMEs show willingness to expand, with the wholesale/trading sector expecting significant business and store growth.
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