This year saw a healthy MSME credit demand, with FMCG and retail, Consumer Durables and Apparel being the key segments
FinTech BizNews Service
Mumbai, December 26, 2023: The year 2023 has been an economically enabling year for the MSME ecosystem. Arun Nayyar, MD & CEO, NeoGrowth informs: “Right at the beginning of the year, our MSME Business Confidence Study 2023 revealed that 3 out of 4 MSMEs were confident of India’s economy and 96% MSMEs expected their profits to increase during the year. 2023 saw Digital India at its peak; UPI transactions marked the INR 17.4 trillion milestone in November 2023. Formalisation of the economy is another driver of economic growth. GST collections touched INR 1.68 trillion in November 2023. This year saw a healthy MSME credit demand, with FMCG and retail, Consumer Durables and Apparel being the key segments.”
In the coming year, NeoGrowth expects a similar trend. The growth of the NBFC ecosystem will be driven by strong risk and governance mechanisms. Arun Nayyar explains: “A deep understanding of the MSME segment combined with the power of AI/ ML and data-based lending models will continue to facilitate MSME lending. With the integration of technology, NBFCs with responsible lending practices, creating a positive impact, will lead the way. With increasing digital sophistication in the financial services sector, compliance, governance, and risk-reward models will sit at the center of the MSME lending industry.”
