World MSME Day 2026: 5 in 10 MSMEs continue to face supplier management, invoice compliance, price volatility and credit challenges; Digital Procurement adoption accelerating
GST
Dated:- 26-6-2026
PTI
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 and 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 e
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nt, 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 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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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 & Construction” 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 categorie
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