India's growth narrative is increasingly being shaped by its Micro, Small, and Medium Enterprises (MSMEs), with technology acting as a key enabler. Vidit Aatrey, Co-founder, Managing Director and CEO at Meesho, emphasizes this shift, highlighting the Union Budget 2026–27 as a reflection of an "ecosystem-led approach" that supports MSMEs, women entrepreneurs, and manufacturers through patient capital and modern infrastructure.
MSMEs are vital to the Indian economy, contributing nearly 30% to the GDP and accounting for over 40% of the country's exports. They are also a significant source of employment, second only to agriculture, and are instrumental in driving inclusive economic development across both urban and rural areas. Recognizing their importance, the government is actively promoting the formalization of the sector, improving liquidity, and increasing the availability of risk capital to accelerate growth.
A key focus of the government is scaling micro and small enterprises through improved access to capital. The dedicated ₹10,000 crore SME Growth Fund aims to create MSME Champions, acknowledging that businesses require different forms of capital at different stages. For many MSMEs, the primary constraint is not viability but the absence of growth-oriented capital that allows them to invest and professionalize without excessive leverage. Broader adoption of platforms like TReDS (Trade Receivables Discounting System) improves cash-flow predictability and reduces reliance on informal or high-cost credit. Encouraging Non-Banking Financial Companies (NBFCs) to expand MSME lending strengthens access for enterprises underserved by traditional banks.
Digital adoption is also playing a crucial role in the growth of MSMEs. Indian MSMEs are rapidly migrating from offline to online platforms and adopting technology to improve their operations and increase efficiency. A study revealed that nearly 60% of MSMEs intend to digitize their business processes, with 43% planning to increase their digitalization budget by 2025. This digital shift has enabled companies to move beyond traditional business models and leverage technologies like cloud computing, AI, machine learning, and blockchain to scale their businesses quickly and cost-effectively. By utilizing innovative solutions and embracing digital transformation, MSMEs can increase visibility, facilitate better communication with customers, and speed up transactions.
Furthermore, the government is reinforcing inclusion by supporting women entrepreneurs. Programs such as She-Marts and the She-Mark identity framework are expected to help expand market access and connectivity to formal finance. These measures emphasize enterprise ownership, scalability, and sustainable growth, signaling a shift toward empowering women to run viable, growth-oriented businesses.
Incentives to scale manufacturing complement the MSME agenda. Production Linked Incentive (PLI) programs anchor smaller enterprises within organized supply chains, rewarding output and efficiency. Beyond MSMEs, the budget focuses on strengthening core technology infrastructure, including data centers and cloud capacity, which is an important enabler for the broader economy. By lowering the cost of domestic digital infrastructure, these measures will support wider adoption of AI-driven tools and advanced technologies across businesses of all sizes.
Vidit Aatrey believes that India has only "scratched the surface" of the total opportunity, with a massive runway ahead for further innovation and achievement. Meesho, co-founded by Aatrey, has scaled to 230 million annual transacting consumers and 700,000 sellers, building a logistics network with 15,000+ partners. Aatrey emphasizes that Meesho's strategy is fundamentally powered by platform dynamics, highlighting the economic advantage of scale.