Indian budget boosts MSMEs
India’s Union Budget for 2026–27 includes a Rs 10,000 crore SME Growth Fund and a Rs 2,000 crore boost to the Self-Reliant India Fund. The measures reinforce the government's focus on Micro, Small, and Medium Enterprises, which are key buyers of scalable B2B infrastructure for compliance, payroll, and analytics.
- The MSME sector is a significant contributor to India's economy, accounting for approximately 31.1% of the GDP, 35.4% of manufacturing output, and 48.58% of exports. It is the second-largest employer in the country after agriculture, with over 7.47 crore enterprises employing more than 32.82 crore people. - To improve cash flow for MSMEs, the government has promoted the Trade Receivables Discounting System (TReDS), an online platform where MSMEs can receive financing against their invoices from corporate buyers. This digital marketplace facilitates a transparent bidding process, allowing multiple financiers to bid on invoices, which helps MSMEs secure better financing rates. - The Open Network for Digital Commerce (ONDC), a government initiative, aims to level the playing field for MSMEs in the e-commerce space by promoting open networks for the exchange of goods and services. This platform is designed to reduce the dominance of large e-commerce platforms and provide small businesses with greater access to the digital marketplace. - In the HR tech sector in India, funding saw a significant increase in 2025, with companies raising $379 million across 38 rounds, a 102% rise compared to the $187 million raised in 2024. Recent funding rounds include investments in companies like WorkIndia, Expertia, and HerKey. - B2B sales are increasingly leveraging AI for tasks like sales forecasting, lead scoring, and personalized marketing. AI tools can analyze CRM data and customer interactions to predict which leads are most likely to convert and suggest the next best actions for sales representatives, with some companies reporting an 18% reduction in their average sales cycle after implementing AI-driven automation. - For companies selling API products in India, pricing strategy is moving beyond a simple "per-call" model to value-based approaches. Factors influencing API pricing include the uniqueness of the data or service, market competition, and the cost pressures from large enterprise buyers who often expect very low rates for regulatory APIs. - Workforce analytics is shifting from historical reporting to predictive and prescriptive insights, helping HR leaders anticipate future talent needs and risks. By analyzing data on skills, performance, and employee sentiment, organizations can make more informed decisions about talent mobility, retention, and workforce planning. - As leaders transition from hands-on roles to executive positions in scaling startups, a key challenge is shifting from direct execution to empowering teams. This involves building a strong leadership bench with specialized expertise, delegating decision-making, and establishing clear communication and accountability structures to support growth.
