MSME Revenue Growth: 81% Expect Increase (Kinara Capital)
- A new report indicates that micro, small, and medium enterprises (MSMEs) in India are largely optimistic about their future business prospects.
- Kinara Capital's fourth edition of MSME Insights, based on a survey of over 9,300 MSMEs across multiple states and sectors, shows that 81% of respondents anticipate revenue growth...
- The MSME sector is also showing increased formalization, with 51.7% of those surveyed reporting that thay are registered for the Goods and Services Tax (GST).
Indian MSMEs are brimming with optimism! A recent study reveals that a whopping 81% anticipate revenue growth within the next two years. While embracing formalization, with over half registered for GST, a significant challenge persists: the heavy reliance on cash transactions. This signals a crucial need for deeper digitization across the MSME landscape.Kinara Capital’s insights highlight the importance of digital payments for financial inclusion, which can unlock access to credit and reduce the credit gap. For more insights, visit News Directory 3. It’s time to address the use of primarykeyword and secondarykeyword.Discover what’s next for MSMEs as they navigate this evolving landscape.
Indian MSMEs Optimistic About Growth, But Still Rely on Cash
Updated June 28, 2025
A new report indicates that micro, small, and medium enterprises (MSMEs) in India are largely optimistic about their future business prospects. However, the study also reveals a continued reliance on cash transactions, signaling a need for increased digitization efforts.
Kinara Capital’s fourth edition of MSME Insights, based on a survey of over 9,300 MSMEs across multiple states and sectors, shows that 81% of respondents anticipate revenue growth within the next two years. A significant portion, 34%, expects growth exceeding 15%.
The MSME sector is also showing increased formalization, with 51.7% of those surveyed reporting that thay are registered for the Goods and Services Tax (GST). This compliance allows for easier access to credit and reduces the overall tax burden.
Despite the move toward formalization, the survey found that 84.3% of MSMEs still conduct a significant portion of their business transactions in cash, excluding UPI payments. This reliance on cash underscores the need for deeper digitization within the sector.
Hardika Shah, founder and CEO of Kinara Capital, emphasized the importance of digitization for MSME financial inclusion. She said improved access to formal credit is fueling optimism, but the continued reliance on cash highlights the need to accelerate digitization. Embracing digital payments can enhance financial transparency and substantially boost access to formal credit, ultimately helping to close India’s ₹30 lakh crore credit gap, Shah added.
What’s next
The focus moving forward will be on encouraging MSMEs to adopt digital payment methods to improve financial transparency and access to credit. further initiatives and policies may be implemented to support this transition and bridge the credit gap within the sector.