MSME Day 2025: Enabling India’s Backbone to Scale with Trust, Credit, and Digital Tools

As India celebrates World MSME Day 2025, the spotlight turns once again to a sector that is not just foundational to the country’s economic engine but vital to its vision of Viksit Bharat 2047. With over 6.3 crore micro, small, and medium enterprises, the MSME sector contributes nearly 30% to India’s GDP, accounts for almost half of its exports, and supports the livelihoods of over 11 crore Indians.

But beyond these numbers lies a more nuanced story of resilience, reinvention, and the relentless pursuit of inclusion.

Bridging the Credit Divide

Despite the promise and performance, MSMEs continue to grapple with persistent challenges. Mukul Goyal, Co-Founder of Stratefix Consulting, highlights a key structural concern: “While schemes like the ECLGS, PM Vishwakarma Yojana, and RAMP have offered relief, gaps remain. A report by the IFC estimates a credit gap of ₹25 lakh crore in the MSME sector. Nearly 85% still operate in the informal economy, lacking access to formal finance, skilled talent, and modern technology.”

Goyal emphasises that the road to scalability lies in simplifying compliance, fostering tech adoption via affordable SaaS models, and easing access to collateral-free credit. “With India targeting a $5 trillion economy, MSMEs must be enabled not only to survive but to scale,” he asserts.

NBFCs: The Catalysts of Financial Inclusion

For many small businesses that remain out of reach for traditional banking systems, Non-Banking Financial Companies (NBFCs) have emerged as lifelines. Arun Kumar Nayyar, MD & CEO of NeoGrowth, underscores this shift: “NBFCs are bridging the last-mile credit gap, especially for MSMEs that remain unserved and underserved. With deep market understanding and agile credit models, we are uniquely positioned to unlock scale for MSME growth.”

NeoGrowth is among the few institutions leading this transformation using data-driven underwriting, cashflow-based repayment models, and digital transaction trails. Nayyar adds, “This year’s MSME Day theme, ‘Business for MSMEs: Connecting the Entrepreneurs’, reminds us that collaboration and ecosystem thinking are essential. When capital, technology, and NBFCs come together, MSMEs become unstoppable engines of India’s future.”

Building Digital Trust: The New Growth Currency

As India transitions into a digital-first economy, trust is becoming the cornerstone of MSME scalability. In an age where data security, digital verification, and online credibility shape business success, the ability of small enterprises to build and maintain trust is critical. From hiring new employees to accessing loans and forming new partnerships, digital transparency is no longer optional — it’s essential. Mr. Ajay Trehan, Founder & CEO of AuthBridge, succinctly frames the future:

“MSMEs are not just the backbone of India’s economy—they are the soul of our entrepreneurial spirit. Building digital trust shouldn’t be a burden — it should be a catalyst for growth.”

He stresses the importance of simple, smart, and scalable tools that enable small businesses to hire confidently, access credit seamlessly, and operate with integrity. “Because when small businesses are trusted,” Trehan says, “they become unstoppable drivers of inclusive and sustainable growth.”

The Way Forward: Working Together for MSME Growth

India’s MSME sector stands at a turning point, with support coming from three major areas — government policies, financial services, and digital technology. If these forces come together, they can unlock huge opportunities for small businesses across the country.

But this will only work if all key players join hands:

• Government bodies need to make rules easier to follow and encourage more small businesses to register and become part of the formal economy.

• Banks and NBFCs should focus on reaching businesses that still don’t have easy access to credit, especially in remote or underserved areas.

• Technology companies and consultants must help MSMEs adopt digital tools, manage operations efficiently, and grow in the modern economy.

MSME Day 2025 is not just a celebration — it’s a reminder that India’s future depends on how well we support our small businesses. When MSMEs grow, the entire nation moves forward.