Indian MSMEs anticipate increased profitability in 2024, according to a report
- ByStartupStory | January 11, 2024
According to a survey conducted by NeoGrowth, Indian micro, small, and medium enterprises (MSMEs) are optimistic about higher profitability in 2024 compared to the previous year. The NeoInsights MSME Business Confidence Study 2024 revealed that 90% of MSMEs are confident in India’s economy this calendar year, with 91% anticipating increased profits.
Based on a nationwide survey of approximately 3,000 business owners across 25 cities and over 75 industry segments, the report also indicated high optimism levels among MSMEs in various sectors. In the wholesale and trading sector, 95% of MSMEs expressed confidence in the country’s economic growth, closely followed by the manufacturing sector at 92%.
Maintaining a positive outlook, about 67% of MSMEs foresee a surge in consumer demand in 2024, particularly those in the retail and trade/wholesale segment. Regionally, nearly 87% of MSMEs in Delhi exhibit a high level of optimism about increased consumer demand.In terms of business confidence for the new year, 95% of MSMEs in Bengaluru believe they will see profits in 2024, with a majority expecting profits to increase by over 30%. Hyderabad and Delhi follow with 93% and 92%, respectively, anticipating profits. Conversely, MSMEs in Mumbai adopt a more conservative stance.
Regarding sustainability practices, the report indicated that in 2024, more MSMEs are open to adopting sustainable practices, with 81% expressing interest in going eco-friendly. Additionally, hiring is expected to grow this year.
Commenting on the credit demand trend, the report stated, “Following the 2023 trajectory, credit demand will also be growing this year with about 60% of MSMEs expected to avail of business loans in 2024.” This trend is also anticipated among women-led MSMEs, with Bengaluru, Pune, and Delhi expected to have the highest credit demand.
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