The year 2020 and the first half of 2021 have been the unfavorable period for the world. The year 2022 will be a year to redefine everything. The 2 years of confinement have taught us a new way of life. A few key themes that will further evolve and change the future are – virtual work, digital banking, increased health awareness, shorter/cheap vacations, savings, digital currency, etc.
The Union budget has magnified the vision of digital India and the importance of technology in all priority areas such as infrastructure and skills. The MSME ecosystem will get a big boost given the increased focus on sector development over the past couple of years.
The extension of the ECLGS until March 2023 will ensure that the much needed credit gap is closed and MSMEs will have enough time and funding to continue their functions smoothly. The redesign of the CTGMSE program will help the micro-sector, which could not benefit from the ECLGS earlier because it did not have outstanding credit, which was the basic condition to benefit from the ECLGS.
The banking sector will also improve due to fewer delinquencies thanks to good early warning systems supported by the evolution of the digital ecosystem.
The interconnection of Udyam, e-Shram, National Career Service (NCS) and Atmanirbhar Skilled Employee-Employer Mapping (ASEEM) expands the scope of services related to credit facilitation, training and recruitment. Indian MSMEs would greatly benefit from adopting the technology.
Adapting technology in MSMEs will help scale up their operations. Technologies such as artificial intelligence can take over time-consuming administrative tasks so businesses can focus more on crucial and strategic work. With changing market dynamics and market competition, every organization needs to establish a strong brand position in their respective market.
In today’s digital age, without proper use of digital technologies and social media strategies, it is difficult to sustain and grow. Digitization will allow MSMEs to grow faster through digital payments and, in turn, this will reduce the burden of credit.
Digital invoice acceptance is one of the few good steps in digitizing the value chain. Given the rapid rise of digital payments, it was essential to develop digital infrastructure to support digital banking, which has enormous potential.
We believe that improved access to funds, MSME clustering and the ease of doing business initiative, coupled with new fintech enablers for MSMEs, will bring a huge increase in the sector.
(The author is CPO, AjvaFintech – end to end solution provider of MSME services)
Posted: Saturday, February 26, 2022, 1:31 PM IST