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World MSME Day 2026: 5 in 10 MSMEs continue to face supplier management, invoice compliance, price volatility and credit challenges; Digital Procurement adoption accelerating
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....orld MSME Day 2026: 5 in 10 MSMEs continue to face supplier management, invoice compliance, price volatility and credit challenges; Digital Procurement adoption accelerating<BR>GST<BR>Dated:- 26-6-2026<BR>PTI<BR>New Delhi [India], June 26: India’s 7.4 crore-plus MSMEs registered on the Udyam and Udyam Assist platforms form the backbone of the economy, generating employment for over 32 crore people and contributing around 31% of GDP, 35.4% of manufacturing output and nearly half of the country’s exports. For these businesses — manufacturers, traders, retailers, service firms and millions of micro-entrepreneurs — procurement of raw materials, inventory, packaging, IT and office supplies remains one of the largest operating expenses a....
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....nd a critical daily activity. Key drivers for rising adoption of digital procurement are wide selection of products, ease of comparison across suppliers, centralised spend visibility and GST compliant invoicing • 8 in 10 Indian MSMEs surveyed expect increased use of B2B digital marketplaces in the next 2 years • Over 16,000 MSMEs across 137 districts of India share detailed insights on how they procure and are adopting digital procurement For decades, MSME procurement has been overwhelmingly offline and relationship driven, carrying persistent friction — limited price discovery, missing or non-GST-compliant invoices and long cycles. With challenges like managing multiple suppliers, non-compliant invoices, payment/credit constr....
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....aints and price volatility, it has been a difficult journey for the majority. That is changing fast. The Indian B2B e-commerce opportunity is widely regarded as one of the country’s largest digital commerce segments, estimated at around USD 200 billion by 2030. Public digital rails have made the shift viable down to the smallest business: GST collections touched a record INR2.43 lakh crore in April 2026, the Government e-Marketplace (GeM) has crossed INR18.4 lakh crore in cumulative procurement, ONDC clocked around 218 million transactions in FY26, and Union Budget 2026–27 backs the sector with a dedicated INR10,000 crore SME Growth Fund. The World MSME Day, observed every year on June 27th is a day that was designated by the United....
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.... Nations General Assembly in 2017 to raise awareness of the contribution that micro, small and medium enterprises make to sustainable, inclusive economic growth, decent work and the UN Sustainable Development Goals. It is in this context that LocalCircles conducted this national study, with responses from over 16,000 MSMEs across 137 districts. The findings show the MSME procurement landscape, the challenges associated and how an increasing number of MSMEs are taking to digital procurement. 7 in 10 MSME businesses surveyed have 10 or less employees The survey first asked MSME respondents, “What is the size of your business?” Of the 4,540 respondents, 34% said they are a “one-person business”; 35% reported “2–10 employees”;....
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.... 18% “11–50 employees”; 7% “51–200 employees”; and 6% “200+ employees”. To sum up, 7 in 10 MSMEs surveyed have 10 or fewer employees, confirming that the bulk of India’s MSME base is made up of micro businesses with very lean teams — precisely the segment for which friction-free, low-minimum digital procurement is most consequential. 6 in 10 MSME businesses in the survey were represented by Founders/Co-Founders/Owners To gauge how close respondents are to procurement decisions, the survey asked, “What is your role in the business?” Of the 4,620 respondents, 46% identified as “Owner/Founder”; 13% as “Partner/Co-founder”; 21% as “Procurement/Purchase Manager”; 7% as “Office/Operations Manager”; an....
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....d 13% selected “Other”. To sum up, 6 in 10 MSMEs in the survey were represented by Founders, Co-Founders or Owners, which means the views captured here largely reflect the people who actually sign off on procurement spend, not intermediaries. Manufacturing, Business Services, Retail & Trading/Wholesale constitute 70% of MSMEs in India The survey next asked, “Which sector does your business operate in?” Of the 4,619 respondents, 28% were in “Business Services (technology, financial, creative services etc.)”; 21% in “Manufacturing”; 21% in “Retail & Trading/Wholesale”; 8% each in “Hospitality & Restaurants”, “Education” and “Automotive”; 7% in “Healthcare”; and the balance in “Real Estate & Construc....
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....tion” and “Others”. To sum up, Business Services, Manufacturing and Retail & Trading/Wholesale together constitute roughly 70% of MSMEs in India, in line with the Udyam-registered base. Given their combined weight, this release presents dedicated sector cuts for Business Services and Manufacturing. 7 in 10 MSMEs regularly procure IT equipment, office stationery & supplies, packaging materials for their business Moving to procurement itself, the survey asked, “In what all categories do you primarily procure for your business?” Some of the 4,465 respondents chose more than one option. 49% indicated “Electronics/IT equipment”; 40% “Office supplies”; 40% “Packaging materials”; 30% each “Industrial supplies”, “H....
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....ousekeeping supplies” and “Others”; and 9% each “Pantry items” and “Office furniture & décor”. In addition, if we look at sectoral data, we find that the Manufacturing MSMEs buy more tools and industrial supplies while the MSMEs operating in Business Services sector buy more housekeeping supplies. To sum up, 7 in 10 MSMEs regularly procure IT equipment, office stationery and supplies, packaging, pantry and housekeeping items. Over 3 in 10 MSMEs surveyed are spending over INR 2 lakhs in monthly procurement; 1 in 10 of them spend over INR 10 lakhs monthly On ticket size, the survey asked, “What is your average monthly procurement spend in the above categories?” Of the 4,605 respondents, 44% reported spending “http://w....
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....ww.localcircles.com To access the detailed report or subscribe to LocalCircles consumer and sectoral insights, please contact via Email: [email protected], Mobile: +91-8585909866 (Disclaimer: The above press release comes to you under an arrangement with PNN and PTI takes no editorial responsibility for the same.). PTI PWR =============<BR> News - Press release - PIB....