The SMEs & MSMEs have suffered tremendously due to Covid-19 and need the strongest support from the Government in coming years like a specific five-year plan for their revival and growth as they are the major contributor to India’s economy and social development. In India, the sector has gained significant importance due to its contribution to the Gross Domestic Product of the country, approximately 30% and exports, approximately 49%. This sector has also contributed immensely concerning entrepreneurship development especially in semi-urban and rural areas of India. Most importantly they generate large-scale employment for an unskilled or semi-skilled workforce of India. The digital adoption trend in India is going strong, and most of the FinTechs are working closely with MSMEs. The MSME ecosystem has been more resilient in 2021. Digital adoption, phased lockdowns, and MSME preparedness seem to have contributed to business strength. With lockdowns and restrictions being a constant reality in the pandemic world, the MSMEs are paying more attention to their cash flow and financial management. 2022 seems to be a growth year for MSME. Within MSME, segments like retail have struggled a bit more with the recovery while Pharma has grown during the Pandemic. But overall, the MSME is almost back to full recovery. In the last couple of years, we saw tremendous digital adoption by this segment. Small businesses transitioned from their offline workflows to digital platforms.

MSMEs is now the second-largest employment provider segment in India. In India, the sector has gained significant importance due to its contribution to the Gross Domestic Product of the country and exports. Fintech will play an integral part in boosting MSMEs. MSMEs are being encouraged to market their products on the e-commerce site, especially through Government e-Marketplace, owned and run by the government, wherefrom Ministries and public sector undertakings source their procurement. As on.