Trends and Trajectory of the MSME Landscape in India

SUMIYA K; LISSY N S

doi:10.36948/ijfmr.2025.v07i05.58265

Trends and Trajectory of the MSME Landscape in India

Author(s)	Ms. SUMIYA K, Dr. LISSY N S
Country	India
Abstract	This report uncritically analyzes the actual trends, growing form, and fight crucial in India's MSME sector, which employs over 110 cardinal people, relationship for over 40% of exports, and approval over 30% of GDP. The study uses correlation investigating and simple linear fixation to evaluate the impact of endeavor characteristics, digital adoption, operational adulthood, and turnover trends on perceived two-year growth potential. It does this by utilizing a nonrandom sample of 20 MSMEs that are actively using authorities’ schemes and digital tools. The collection show that optimism is more influenced by unobserved factors, with a modest model fit (R2 = 0.219; Adj. R2 = 0.011) and no predictor reaching statistical significance at p < 0.05. An "adoption paradox" is revealed by correlation consequence, in which formal acceptance measurement have a negative human relationship with actual tool use and advantages received. While digital tool usage postulate correlates with service access and payment, indicating an “engaged user bunch.” Despite helpful policies (e.g., Start-up India, MUDRA, ECLGS, GST-led formalization), relentless issues include credit access, analogue preparedness gaps, informality, spilling deficits, infrastructure constraints, and complex compliance. The report suggests bolstering export-innovation change (R&D incentives, brooder, and trade facilitation), a single bilingual schemes portal, mark digital skill, and credit substructure (including fintech underwriting). The consequence show that in order to warrant long-term MSME fight, impact measures must be built, last-mile policy execution must be reinforced, and capability-building must be incorporate. Self-reported perception and a small sample size are bound; future studies should exclude clinical performance data, model mental and system variables, and addition example sized.
Keywords	MSME, Digital Transformation, Government Initiatives, Credit Access, Economic Development.
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-23
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.58265

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Trends and Trajectory of the MSME Landscape in India

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