(MENAFN- KNN India) New Delhi, Jan 10 (KNN) India's economic prospects in 2024 are viewed positively by 90 per cent of Micro, Small, and Medium Enterprises (MSMEs), with around 44 per cent of these enterprises having plans to grow their workforce.
This demonstrates a favourable attitude towards fostering a conducive business environment, as indicated by NeoGrowth, a specialised Non-Bank financial Company (NBFC) for MSMEs.
This insight is drawn from a comprehensive study analysing responses from over 3,000 MSMEs across 25 prominent cities in India.
Government initiatives to streamline business processes, coupled with strong consumer demand, contribute to this optimism, as 91 per cent of MSMEs expect a surge in profits during the coming year.
In the realm of economic optimism, the wholesale/trading sector takes the lead, with an impressive 95 per cent expressing confidence.
This optimism is fuelled by supportive government policies, robust domestic and global demand, painting a picture of unwavering positivity in this sector.
Retail MSMEs also share in the optimism, with 94 per cent of MSME retailers anticipating increased profits in 2024.
Additionally, 58 per cent of trading/wholesale MSMEs foresee profit increments exceeding 30 per cent.
Furthermore, 75 per cent of MSMEs in the wholesale and trader segment remain bullish on consumer demand in 2024, echoing the positive sentiments expressed in 2023.
Geographically, Delhi stands out as the most optimistic location, with 87 per cent of surveyed MSMEs anticipating a surge in consumer spending. Bengaluru and Pune follow closely with remarkable confidence levels.
Looking at financial considerations, nearly 60 per cent of MSMEs across sectors anticipate the need for credit in 2024, with wholesale/trading and services sectors leading at 64 per cent.
Loan providers are advised to focus on quick disbursals, digital processes, and favourable terms. Notably, Delhi MSMEs prioritise digital processes, while those in Pune value fast approvals and disbursals.
In metropolitan hubs like Bengaluru, Pune, and Delhi, the demand for loans appears strongest.
Additionally, a significant 60 per cent of MSMEs plan expansion in 2024, particularly through the establishment of new stores and offerings.
Bengaluru, Delhi, and Pune MSMEs emerge as eager players in this expansion, with the wholesale/trading sector anticipating substantial business and store growth.
(KNN Bureau)
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