By Shilpa Kumar and Amol Warange
While our first report in collaboration with CRISIL - Transmission Conundrum, highlighted the predicament of smaller non-banks and suggested five ways of ironing out the landscape, our second one on the impact of digital transformation on Incumbents looked at accelerating digitisation on financial services and its impact on partnerships, financial inclusion and future regulations. The final one in our partnership with CRISIL is on the pace of digitalisation among MSMEs.
The 63 million micro, small, and medium enterprises(MSMEs), which contribute 33% to the country’sGDP, are the backbone of the economy. Digitalisation has made MSMEs agile, has improved speed to market, and given them access to a global market of customers. The COVID-19 pandemic became the necessary push towards digitalisation for the nation. However, there were already efforts made to pave the road to going digital. These initiatives have broken ground. To understand their impact and to identify the areas of apprehension, it was important to ascertain and quantify the state of digitalisation among MSMEs. To further these efforts, CRISIL MI&A Research, in partnership with Omidyar Network India (ONI) conducted a cross-sectional survey and found that MSMEs have not only adopted digital receipts and payments but are increasingly becoming a part of the digital ecosystem. Cash, however, is still prevalent and a widespread technological change to achieve operational efficiencies is still to come.
Read our report below on the four-pronged approach we recommend to improve MSMEs' digitalisation levels. You can also download the report as a PDF here
