As the much feared Covid pandemic is losing its toll, the world economy is experiencing a rebirth. With India at the cusp of a digital edge, Industry 4.0 has built in-roads across sectors, accelerating the process of digitisation by at least a decade.
Even as the pandemic caused unprecedented disruptions across businesses and supply chains, the Micro, Small, and Medium Enterprises (MSME) sector was the worst hit. Contributing to about 29 per cent of the country’s GDP and referred to as the country’s growth accelerator, the MSME sector is now embracing digital transformation persuaded by the rise of the internet economy and a host of new-age startups. Several tech-led companies and business accounting firms have also joined the movement to deliver creative solutions to MSMEs. Also, the government’s recent efforts have been beneficial in re-establishing its footing.
In the Union Budget, the Government has tried to magnify the Digital India vision and importance of technology in all focus areas like infrastructure and skills. MSME eco-system is expected to get a nice boost given the increased focus in developing the sector in the past few years. The extension of ECLGS to March 2023 will ensure to fill the much-needed credit gap and MSMEs will get sufficient time and funding to carry on their functions smoothly. Also, the revamping of the CTGMSE scheme will help the micro sector businesses who were not able to avail ECLGS earlier because they did not have existing credit outstanding, which was the basic requirement for availing ECLGS.
Sharing his views on the same Rajesh Gupta, CTO and Co-Founder, BUSY Accounting Software says, “The acceptance of Digital Transformation by local businesses has been a revelation in the MSME and SME sector. Today these business owners can leverage complex technology to streamline their day-to-day functioning, this in return is not only helping them in addressing to a much larger consumer market but their financial and operations needs are also being taken care of.”
“To add to it, there are also effective measures taken by the Indian Government to integrate these rural business owners with the National Economy,” he further adds.
The acceptance of Digitisation will enable MSMEs to grow faster with digital payments and in turn this will lessen the credit burden. Digital acceptance of invoices is also one of the few good steps in digitising the value chain. Today, MSMEs can have seamless access to Financial Accounting, Inventory Management and Management Information systems with the help of these digital tools.
