Leading SMEs of India 2021

3 Dun & Bradstreet is pleased to bring to you the release of the 12 th edition of its premier publication ‘Leading SMEs of India’ . For over a decade, Dun & Bradstreet has endeavoured to provide credibility and visibility to small and mid-sized companies. The ‘Leading SMEs of India’ publication reinforces this commitment towards promoting Indian MSME sector. The MSME sector has given significant contribution in socio-economic development of India by nurturing entrepreneurship and generating employment opportunities. The sector has emerged complimentary to large industries and plays a crucial role in the supply chain. The onset of COVID-19 pandemic adversely impacted small businesses across countries and Indian SMEs were no exception. Apart from disruption in business activity, weak demand and low consumer confidence posed an existential threat to the MSME segment. However, various proactive measures taken by the government under Atma Nirbhar Bharat Abhiyan helped MSMEs to survive, and some even to thrive during this challenging period. The key remedial measures taken by the government were ` 3 trillion collateral free automatic loan, ` 200 billion subordinate debt for stressed MSMEs, ` 500 billion equity infusion and mandatory government procurement from Indian companies especially MSMEs for tenders below ` 2 billion. All theses measures have provided much needed impetus to the MSME sector. Almost 11.5 mn of MSME borrowers have taken collateral free automatic loans with sanctioned loans over ` 28.6 mn as of September 24, 2021. The MSME sector has emerged as the key beneficiary of this scheme as out of total guarantees issued, ~95% of the guarantees are for the loans sanctioned to MSMEs. Similarly in case of subordinate debt scheme, as of December 2020, 12 banks had extended guarantees of ` 176.6 mn to 178 stressed MSMEs. The RBI also announced measures like Resolution Framework 2.0 for COVID-related stressed assets of MSMEs and special three- year long term repo operations for small banks to support MSME sector. Apart from these credit-related measures, steps like reclassification of MSMEs which is expected to help them grow in size without losing their entitled benefits and simplification of MSME registration process through Udyam online registration portal are crucial in the revival of the sector. With an aim to address grievances of MSMEs and support them in their difficult times, the government has launched ‘CHAMPIONS’ a unified technology driven platform. This portal is expected to help in resolving various concerns of MSMEs related to finance, raw materials, labour and permissions, amongst others. While all these measures are helping in the recovery of MSMEs, the government needs to further emphasize on easing the regulatory burden on MSMEs to enable them emerge stronger post the pandemic. In this endeavour, increased digitization in various areas ranging from inspection, compliance management to regulatory updates can significantly improve ease of doing business for MSMEs. This will not only help Indian MSMEs to recover but also encourage them to contribute in creating a US$ 5 trillion Indian economy by 2024. ‘Leading SMEs of India 2021’ publication will be a valuable source of insights about performance of SMEs and serve as a comprehensive ready-reckoner about this segment. I hope this publication is helpful and I look forward to receiving your valuable feedback and suggestions. Preeta Misra Senior Director Credibility & Business Insights Group (CBIG) & Learning & Economic Insights Group (LEIG) Dun & Bradstreet FOREWORD Dun & Bradstreet