Unlocking MSME potential to fuel India's growth with digital innovation

Embracing Digital Transformation

Ankit Gaur, Head, Payment Gateway and Online Merchants at PhonePe, opened the event with an inspiring address. He highlighted Madhya Pradesh’s entrepreneurial spirit and how Indore exemplifies the power of small businesses, praising the city’s rich heritage, which coexists with modern day automation and digital marketing.

Gaur emphasized that technology remains the key driver of growth for small businesses. “From digital payments to AI-powered analytics, the right tools empower small businesses to achieve more with less, scale faster, and compete on a global scale. What sets your businesses apart is your resilience and adaptability. Unlike larger corporations, small businesses have the agility to pivot quickly in response to market shifts, customer needs, and technological advancements. This ability to adapt swiftly is your superpower; it's what enables you to thrive in today's rapidly changing business environment. The businesses that listen to customer feedback, anticipate market shifts, and embrace reinvention will lead the future.”

Gaur assured that PhonePe Payment Gateway is committed to playing its role in the transformation of such enterprises by offering easy access to digital tools and solutions that enable businesses to scale faster and compete globally.

Delivering Big Opportunities to Small Businesses

The first panel discussion, titled Delivering Big Opportunities to Small Businesses: Expanding MSME Access to Money and Markets, featured a diverse group of industry leaders, moderated by Shruti Mishra, Deputy Editor of CNBC-TV18. The panel included Akshat Chordia, Chairman of Malwa Zone (CII Western Region); Jay Jain, President of TiE MP and Co-Founder of Astute Group and Arshad Patel, Zonal Business Head of DTDC Express.

Discussing the critical role MSMEs play in India’s economy, particularly in terms of employment and growth, they emphasized the importance of improving access to capital, with fintech innovations like PhonePe PG making financing more accessible for MSMEs. The conversation also touched on the challenges MSMEs face when seeking loans, particularly in relation to collateral, and the need for simplified processes.

The panellists also explored the role of logistics in enabling growth for MSMEs, with Madhya Pradesh’s strategic location as a key advantage. They highlighted the investments in logistics and warehousing in the state, which have made it easier for MSMEs to access markets across the country and beyond. Overall, the discussion focused on expanding MSMEs' access to financial resources and market opportunities to fuel their next phase of growth.

Bringing Uniformity to MSME Digital Transformation

The second panel discussion, Divided No More: Bringing Uniformity and Stability to MSME Digital Transformation, brought together industry experts - Ankit Gaur, Head, Payment Gateway and Online Merchants, PhonePe; Anurag Bothra, MD, Om Namkeen; Rajat Jain, Co-Founder, Kimirica; Tanutejas Saraswat, Founder & CEO, ShopKirana; Aditi Chourasia, Co-Founder and COO SuperSourcing; Nitin Pamnani, Co-Founder, Itokri and Anubhav Dubey Co-Founder, Chai Sutta Bar.

This panel explored the challenges and opportunities in MSME digital transformation, highlighting the importance of awareness, as many small businesses still unsure of how to leverage digital tools. They discussed the ease of entering the digital space, with solutions like plug-ins and fintech innovations reducing the complexity of going online. The conversation also covered the role of capital in facilitating digital transformation and the need for MSMEs to effectively use digital marketing to promote their products.

The discussion covered the mindset shift required for MSMEs to embrace digital transformation more effectively. The participants emphasized that it’s not just about adopting technology but also about rethinking business processes and positioning, to align with the digital economy. The need for continuous innovation and leveraging data to make informed decisions were some of the key takeaways.

Attracting Capital and Building Capacity for MSME Growth

The event also featured an enlightening fireside chat with Shri P. Narahari, IAS, Secretary of PHE, Government of Madhya Pradesh. He reflected on the growth of MSMEs in the state, citing the remarkable increase in start-ups and women-led enterprises since the launch of the MSME and startup policy in 2002. “The growth story of start-ups in India is remarkable, and I would say that start-ups and MSMEs have now become the backbone of the Indian economy in terms of growth and employment. Most importantly, what is driving India is hope, and start-ups are the hope,” Shri Narahari remarked, adding, “In Madhya Pradesh, we have progressed tremendously well in the last four to five years.”

He also discussed the on-going rural-urban convergence in Madhya Pradesh and across India, emphasizing the development of infrastructure that bridges the gap between rural and urban areas. Shri Narahari lauded the collaborative efforts between corporates and MSMEs, which will help to transform local businesses into global players and advised, “Corporate entities and organizations need to put in more effort to minimize this skill gap. It cannot be done by the government alone. We need to work together to ensure the skilling aspect is addressed, especially for skilled manpower at the lower levels, where we are facing many challenges.”

Recognizing Excellence in MSMEs

One of the highlights of the evening was the felicitation ceremony, where outstanding small businesses were recognized for their contributions to the industry. The companies honoured included Digital Gurukul, The Kabadiwala, Kheoni, Apsara Tea, Bingage, Graffersid, ClassMonitor, Himalayan Organics, Chai Sutta Bar, and Anaxee Digital Runners. These businesses have made significant strides in innovation, sustainability, and market expansion, setting benchmarks for others to follow.

A Bright Future for MSMEs

As Ankit Gaur noted, “The future of small businesses in India is bright, defined by those who lead with vision, embrace change, and create new possibilities.” The Indore Huddle, which concluded with a networking dinner, offered small businesses the opportunity to accelerate their journey to success, driving discussions that could shape the future of MSMEs in India.

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