By Author 
Every morning, form every corner of India:
A loom starts weaving in Varanasi.
A mechanic opens his workshop in Nashik.
A turmeric farmer in Manipur begins packing online orders.
No spotlight. No headline. Just determination.
These are India’s 63 million+ MSMEs—the businesses that run our markets, power our exports, and keep millions employed.
But today, on MSME Day 2025, we’re not here to romanticize them.
We’re here to talk about what they go through, and why they still show up—even when the odds aren’t fair.
The Real Challenges MSMEs Face (But Rarely Talk About)
MSMEs contribute 30% to India’s GDP and over 45% to exports.
But the system doesn’t always return the favour.
1. Payments Come Late. Really Late.
According to government data, over ₹48,000+ crore in payments to MSMEs are still pending.
Even though the law says payments should be made within 45 days, small businesses often wait months—with no interest, no explanation.
Imagine running your shop or factory and not knowing when you’ll get paid for work you’ve already done.
2. Credit Is Still Hard to Get
Only 16% of MSMEs get formal loans from banks.
The rest depend on NBFCs, local moneylenders, or friends and family—often paying high interest, or not getting what they need at all.
Despite new lending platforms and schemes, credit access is still full of paperwork, waiting, and confusion.
3. They’re Still Not Fully Digital
Yes, UPI is everywhere. But when it comes to real digital transformation:
- Only 18% of MSMEs sell online
- Very few use e-invoicing or digital bookkeeping
- Many still don’t know about tools like TReDS or OCEN
This digital gap limits their visibility, slows down payments, and makes it harder to get credit.
And Yet… They Still Show Up
Despite all this, MSMEs are still building, hiring, and growing.
- They generate 110 million+ jobs
- They’ve powered ₹15.6 lakh crore+ in loans through Udyam-linked systems
- From handicrafts in Bhuj to drone tech in Chennai—they’re not just working, they’re innovating
Their strength lies in their consistency, even when the system is inconsistent.
What Needs to Change in 2025?
If we want MSMEs to grow, we need fewer slogans and more support.
Here’s what can actually help:
| What You Can Do | Why It Matters |
| Pay within 45 days | Keeps MSMEs alive and running |
| Introduce them to TReDS | Helps them turn invoices into cash quickly |
| Encourage digital invoicing | Builds credit history and improves loan chances |
| Support Udyam registration | Opens doors to formal finance |
| Buy from local MSMEs | Every purchase supports jobs and growth |
If you’re a lender, buyer, policymaker, or fintech—make “MSME-friendly” more than just a nice word. Make it your actual target.
MSMEs Are Not Just Small. They’re Ready to Scale.
Only 0.3% of MSMEs are officially “medium” in size. But they contribute 40% of MSME exports.
That shows the truth:
– When MSMEs get the right support, they grow fast.
They don’t need handouts. They need speed, visibility, and better access.
How FinAGG Is Supporting MSMEs
At FinAGG, we work with MSMEs across India to fix the very problems they face every day:
- Faster Credit: We offer MSME & SME Loans, without heavy paperwork
- Simpler Access: MSMEs can apply through our app, no long bank visits
- GST + Udyam Data Use: We help businesses unlock loans based on the data they already have
- Real-Time Disbursals: Because waiting 45 days for payment shouldn’t mean waiting 45 more for a loan
Whether you’re a kirana supplier, a textile exporter, or a small manufacturer—we’re building solutions that work for you, not just around you.
“Small businesses don’t want favours. They want fairness. At FinAGG, that’s what we’re working to deliver.”
Final Thought:
MSMEs don’t trend on Twitter.
They don’t ask for attention.
But they always show up—for their customers, for their workers, for India.
So let’s show up for them:
- Clear that old payment
- Help an MSME formalize
- Buy from a local seller
- Share this with someone who can make a difference
That’s how we celebrate MSME Day—with recognition that leads to action.