World MSME Day 2026: 5 in 10 MSMEs continue to face supplier management and invoice compliance challenges; Digital Procurement adoption accelerating

World MSME Day 2026: 5 in 10 MSMEs continue to face supplier management and invoice compliance challenges; Digital Procurement adoption accelerating

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 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 constraints 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 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”; 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”; and 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 & 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 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”, “Housekeeping supplies” and “Others”; and 9% each “Pantry items” and “Office furniture & decor”. 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 “< INR 50,000” a month; 15% “INR 50,000 – 2 lakh”; 24% “INR 2 lakh – 10 lakh”; 9% “INR 10 lakh+”; and 8% could not say. To sum up, over 3 in 10 MSMEs are spending over INR 2 lakhs a month on procurement and roughly 1 in 10 over INR 10 lakhs — a meaningful spend pool whose routing, offline or digital, becomes the next critical theme of the study.

Managing multiple suppliers, non-compliant invoices, payment/credit constraints and price volatility are challenges over 5 in 10 MSMEs regularly face

The survey next asked, “What are all the challenges your business faces in procurement today?” Some of the 4,877 respondents chose more than one option. 67% indicated “Managing multiple suppliers”; 56% each “Non-compliant invoices”, “Price volatility” and “Payment/credit constraints”; 44% each “Limited product availability” and “Difficulty in comparing options”; 33% each “Poor spend visibility”, “Poor quality of goods” and “Delayed delivery”; and only 11% reported “No major challenges”. To sum up, over 5 in 10 MSMEs regularly face these frictions — precisely the kind that digital procurement marketplaces are now built to reduce — and only about 1 in 10 report no major challenges at all, confirming that procurement friction is near-universal.

7 in 10 MSMEs surveyed who use B2B digital marketplaces say their reliance on them has increased in the last 2 years

The survey then probed whether their reliance on digital procurement marketplaces has increased in recent years, asking, “Over the past 2 years, how has your reliance on B2B digital marketplaces changed?” Of the 4,822 respondents, 10% said their reliance “Increased by 300% or more”; 20% “Increased by 200-300%”; 30% “Increased by 100-200%”; 10% “Increased by 50-100%”; 20% “Decreased”; and 10% could not say. To sum up, 7 in 10 MSMEs who use digital procurement marketplaces say their reliance has materially increased over the last 2 years, with a meaningful 1 in 10 saying their usage has more than tripled.

8 in 10 MSMEs who use B2B digital marketplaces say they use them for wide selection of products and ease of comparison across suppliers; GST compliant invoicing and centralised spend visibility also key reasons for usage

Asked, “What are the key reasons for your business choosing B2B digital marketplaces?”, some of the 5,117 respondents chose more than one option. 88% indicated “Wider selection of products”; 76% each “Better pricing/discounts”, “Convenience (ease of ordering/delivery)” and “Ease of supplier comparison”; 62% “GST-compliant invoicing”; 50% “Faster delivery”; 38% “Spend reports/dashboards”; and 12% “Other reasons”. To sum up, 8 in 10 MSMEs cite wider selection of products, ease of comparison, better discounts and convenience of ordering/delivery for using B2B digital marketplaces; Sizeable number of MSMEs also cite GST compliant invoicing and centralised spend visibility as some of the key reasons for their usage.

8 in 10 MSMEs using B2B digital marketplace channels close their procurement cycle within a week, against only 6 in 10 MSMEs using traditional channels

To quantify the speed gap, the survey first asked about traditional channels: “On average, how long does your procurement cycle take when using traditional procurement channels?” Of the 5,365 respondents, 20% reported “<1 day”; 20% “1-3 days”; 21% “3-7 days”; 9% “1-2 weeks”; and 30% “Over 2 weeks”. To sum up, 6 in 10 MSMEs complete their traditional procurement cycle within a week, while for 4 in 10 it takes over a week — and for 3 in 10 it stretches beyond two weeks, a long lead time that directly affects working capital, inventory holding and the ability to respond to customer demand. The mirror question was put to MSMEs using digital marketplaces: “On average, how long does your procurement cycle take when using digital marketplaces?” Of the 5,243 respondents, 28% reported “<1 day”; 19% “1-3 days”; 36% “3-7 days”; 9% “1-2 weeks”; and 8% could not say — notably, no respondent reported a digital cycle of over 2 weeks. To sum up, 8 in 10 MSMEs using digital marketplace channels close their procurement cycle within a week, against only 6 in 10 using traditional procurement channels, indicating that digital adoption compresses procurement cycles.

All MSMEs surveyed that use a B2B digital marketplace say GST-compliant invoices are most critical; over 7 in 10 say downloadable invoice history is also critical

The survey next asked MSMEs using B2B digital marketplaces, “What all invoicing features in a B2B digital marketplace are critical for your business?”, some of the 5,363 respondents chose more than one option. 100% indicated “GST-compliant invoices”; 74% “Downloadable invoice history”; 55% “Integration with accounting tools”; 45% “Credit notes”; 34% “Bulk invoicing”; and 11% “Other features”. To sum up, all MSMEs using a B2B digital marketplace say GST-compliant invoices are most critical for their business, and over 7 in 10 say downloadable invoice history is critical too — a clear signal that compliance and audit-readiness are now central to marketplace choice. 7 in 10 MSMEs in a related question which received 4,478 responses also said that the availability of GST compliant invoicing influences their choice of the marketplace.

8 in 10 MSMEs surveyed expect increased use of B2B digital marketplaces over the next 1-2 years; 6 in 10 expect increased usage of AI tools/agents

Finally, the survey looked ahead, asking, “What all changes do you expect in your business procurement over the next 1-2 years?” Some of the 4,379 respondents chose more than one option. 81% indicated “Increased use of digital marketplaces”; 61% each “AI tools/agents” and “Increased automation/integration with software”; 50% “More supplier diversification”; 31% “Greater use of credit/pay-later options”; and 21% “No major changes expected”. To sum up, 8 in 10 MSMEs expect increased use of digital procurement marketplaces over the next 1-2 years, with AI tools and deeper automation/software integration emerging as the next clear vectors of change.

MSME ratings of B2B digital marketplaces

Beyond how MSMEs use B2B digital marketplaces, LocalCircles conducted a separate rating exercise to capture how satisfied they actually are with the marketplaces they use. Eight of the most-used marketplaces — OfBusiness, IndiaMART, Amazon Business, Flipkart Wholesale, Udaan, Moglix, Zoffco and Industrybuying.com — were rated by MSMEs on a 1-5 scale across eight service categories: Selection, Convenience, Ease of Business Compliance, Features & Additional Services, Customer Service, Ease of Usage, Value and Delivery Speed, where a higher rating indicates higher satisfaction. An average score was then computed across all eight categories for each marketplace.

On overall average, Amazon Business emerged as the top-rated B2B digital marketplace for MSMEs with 4.38 out of 5, followed by OfBusiness (3.63), Flipkart Wholesale (3.50), Udaan (3.38), Zoffco (3.19), Moglix (3.06), IndiaMART (2.94) and Industrybuying.com (2.88). Amazon Business led on Selection (a perfect 5.0), Convenience, Ease of Business Compliance, Ease of Usage and Delivery Speed, while OfBusiness led on Value.

Across every marketplace, Customer Service and Delivery Speed were the lowest-rated categories. Customer Service comprises of ability of customers to register a grievance, receive acknowledgement, get timely resolution of return and refund requests, get supplier information in case of dispute and have the ability to speak to someone if necessary. Delivery Times comprises of ability to deliver products fast, an area that is seeing transformation with the arrival of Quick Commerce. Improvement in both these areas by B2B digital marketplaces will drive up retention, adoption and volume growth over the next 1-2 years.

Summary

The study reveals that digital procurement is increasingly moving from the margins to the mainstream of how Indian MSMEs buy. With 7 in 10 MSMEs surveyed having 10 or fewer employees and 6 in 10 represented by their Founders, Co-Founders or Owners, the findings reflect the real, on-the-ground views of small-business decision-makers across business services, manufacturing and retail/trading — sectors that together make up roughly 70% of India’s MSME base. These businesses procure meaningful volumes: 7 in 10 regularly buy IT equipment, office supplies, packaging, pantry and housekeeping items with different sectors having some categories where they buy more like Manufacturing MSMEs in the tools and industrial supplies category. Over 3 in 10 MSMEs now spend over INR 2 lakhs a month, with roughly 1 in 10 spending over INR 10 lakhs monthly. This is no longer pin-money procurement; it is a serious cost line that deserves serious tooling. However, frictions remain — over 5 in 10 MSMEs still wrestle with managing multiple suppliers, non-compliant invoices, price volatility and payment/credit constraints.

7 in 10 MSMEs say their reliance on digital procurement has increased over the last 2 years — and the drivers are converging: 8 in 10 cite wider selection of products, ease of comparison across suppliers, better discounts and convenience of ordering/delivery for using B2B digital marketplaces; Sizeable number of MSMEs also cite GST compliant invoicing and centralised spend visibility as some of the key reasons for their usage.

The contrast in cycle times is equally telling: 8 in 10 MSMEs using digital channels close their procurement cycle within a week against 6 in 10 MSMEs on traditional channels, with not a single MSME with a digital cycle reported cycle closure time beyond two weeks.

Compliance is no longer optional for MSMEs, with all business digital marketplace users calling GST-compliant invoices critical and nearly 7 in 10 saying it shapes which marketplace they choose. Looking ahead, 8 in 10 MSMEs expect their use of digital procurement marketplaces to rise further over the next 1-2 years, with AI tools and deeper integration/automation emerging as the next vectors of change. The macro backdrop is firmly supportive: manufacturing PMI held at 55.0 in May 2026, GST collections are close to ₹2 lakh crore a month, GeM cumulative procurement has crossed ₹18.4 lakh crore (with micro and small enterprises making up 73% of active sellers and 68% of orders), and the Union Budget 2026-27 backs the sector with a dedicated ₹10,000 crore SME Growth Fund. With the country’s B2B e-commerce opportunity pegged at around USD 200 billion by 2030, the marketplaces that win MSMEs will be the ones that pair breadth of selection with rock-solid GST-compliant invoicing, transparent pricing, flexible credit and intelligent, AI-assisted automation — delivered as easily as a consumer app.

These findings land at a fitting moment. As the world marks World MSME Day 2026 on June 27th, this study shows that digital procurement has become a core part of the transformation underway across India’s small businesses — compressing procurement cycles, embedding GST-compliant invoicing and audit-readiness into everyday buying, and giving even one-person and sub-ten-employee businesses access to selection, pricing and credit once reserved for far larger buyers. Public digital rails — GST, UPI, GeM, ONDC and the MSME-TEAM onboarding push — have made this shift viable down to the smallest enterprises and the smaller districts, even as customer service, delivery speed and last-mile coverage in Tier 2-5 markets are areas where a lot still needs to happen. The message from India’s small businesses is clear: digital procurement is fast becoming mainstream, and the next phase will be about depth, intelligence and trust as much as adoption.

LocalCircles Study Demographics and Methodology

Over 62,000 responses were received from over 16,000 MSMEs located in 137 districts of India. 42% of the respondents were from metro or tier 1 districts, 33% from tier 2 districts and 25% were from tier 3, 4 and 5 districts. This study was conducted using the proprietary LocalCircles stratified sampling methodology. With a minimum target of 25% participation from three location groups (Tier 1, Tier 2 and Tier 3-5 districts) on each poll, all polls were run until they achieved a steady state, after which the LocalCircles system used the bootstrapping technique to draw additional samples and test for the margin of error. All polls were found to have a margin of error under 4% and a confidence level of over 96%. In addition, LocalCircles conducted a separate digital procurement marketplace rating exercise among over 9,000 unique MSMEs between May 1 and June 5, 2026, with at least 500 ratings received for each of the eight marketplaces covered.

About LocalCircles

LocalCircles, India’s leading Community Social Media platform, enables citizens and small businesses to escalate issues for policy and enforcement interventions and enables the Government to make policies that are citizen and small business centric. LocalCircles is also India’s #1 pollster on issues of governance, public and consumer interest.

More about LocalCircles can be found on http://www.localcircles.com

To access the detailed report or subscribe to LocalCircles consumer and sectoral insights, please contact via Email: info@localcircles.com, Mobile: +91-8585909866

Rural Spending Rises by 35 per cent, Outperforming Urban and Metro Areas in 2024 Festival Expenditure

Rural Spending Rises by 35 per cent, Outperforming Urban and Metro Areas in 2024 Festival Expenditure

Hyderabad (Telangana) [India], October 23: Rural consumers are significantly shaping the festive spending landscape this year, with a remarkable 35 per cent increase in their spending. This surge underscores the growing purchasing power of rural India, highlighting its vital role in driving overall consumption growth.

The Fast-Evolving Rural Consumer

According to a comprehensive report from InsightCrunch, based on 4500+ in-depth interviews across 16 states, India is witnessing a surge in spending, highlighting growing consumer confidence nationwide. The increases vary across regions: Rural consumers have an average expenditure of Rs. 15,119, reflecting a significant increase of 35% from the last year. In Urban areas, the average spend rises to Rs. 18,317, marking a 30% increase, while Metro residents spend an average of Rs. 21,151, which represents a YoY growth of 33%. Although Metro residents outspend their rural counterparts by approximately 40% more per capita, the faster growth in rural spending indicates a noteworthy shift.

“The rise in rural spending is a testament to the evolving economic landscape in India. The untapped potential in rural markets is being realised this festive season,” says Deekshith Vemuganti, CEO of InsightCrunch.

While average overall spending per capita stands at Rs. 17,654, almost one-third of the population will be spending under Rs 5000, and another one third between Rs. 5000 and Rs. 15000. Overall, the spending shows an uptick of 32% from the previous year.

How are they funding it?

Fueled by confidence in the Indian economy, 65% of consumers are happy to tap into their savings to amp up the festival fun. Middle-income households, under spending pressure and limited funding options, are 3 times more likely than lower-income groups to rely on bank loans for festival expenses.

“This data provides valuable insights for financial institutions, retailers, and FMCG companies to tailor their festival season offerings and marketing strategies, particularly focusing on middle-income consumers who show a higher propensity for credit-based spending.,” adds Sudhanshu Gupta, VP of InsightCrunch.

Head over to this link if you want free access to the entire report.

About the Company:

InsightCrunch has conducted over 2,250 surveys and has collected 9 crore+ (90 Million+) data points, a comprehensive and reliable basis for analysing trends and behaviours. Through its robust data collection and analytical capabilities, InsightCrunch provides invaluable insights into how various demographics engage with technology.

Please feel free to contact us for more information: Mobile: +91-9160638589, Mail: insights@vedavaag.com

India’s Biggest Money Expo Happening in Mumbai

India’s Biggest Money Expo Happening in Mumbai

Indian economy is expected to grow 5.9 percent in FY24 and is set to contribute 15% to the global economy. With the Largest traders and investor community, India ranks top 10 in the Online trading volume in different Segments like Indian Stocks, US Stocks, Currencies, Virtual Assets, Commodities & Indices.

In 2023, India Market is expected to reach a new high in individual investments across various financial products like Mutual funds, ETFs, Bonds, SIP, AIF, Index funds, hedge funds, Crypto Funds, hybrid funds, Fund Managers, international portfolios and Social trading.

The Technology Era

The evolution of FinTech has made online trading within reach for anyone with just a smartphone. The largest community of traders and Investors has been focused on the Stock market, Forex Trading, and Crypto Trading in recent days with technological developments. However, Understanding the global market sentiments and profitable Trading strategies is a challenge among traders in Asia. Indian traders continue to learn and update themselves with the latest trading techniques and the desire to acquire more financial market knowledge persists.

Money Expo 2023: As an Opportunity

For Traders and Investors, an opportunity to meet all the financial service providers under one roof is availed by Money Expo, One of India’s largest Trading and investing events. Money Expo 2023 is announced to be held on 12-13 August 2023 at Jio Convention Centre, Mumbai. Bringing Face-to-face networking to individuals helps to foster relationships, and learn and build trust with the service providers like stock brokers, Forex Brokers, Crypto Exchanges & FinTech companies.

Educating the Next Generation Traders

The second edition of this 2-day exhibition and Conference is set to feature leading brands in the online trading space and host the largest conference with investment industry experts as speakers covering a wide range of keynote sessions, panel discussions, and presentations. Money Expo focuses on attracting visitors comprising of Individuals, Traders, Investors, HNI, Ultra-HNI, Affiliates, IBs, Fund Managers, Trainers, and Service providers.

A platform for Exploring New Markets

At this event, The audience will witness the largest gathering of Financial Professionals, potentially networking to exchange ideas and learn new market opportunities. Money Expo provides attendees with a unique platform to learn about new products and services, explore potential investment & trading opportunities, and better understand the financial industry.

Summit Focus

  • Investments in Stocks, Forex and Crypto
  • Understanding the Blockchain Ecosystem
  • Unleashing the power of DeFi’s & NFTs
  • Regulations on Cryptocurrencies
  • WEB 3.0 Vs WEB 2.0
  • Metaverse, Gamefi (Play-to-Earn)

Participants

  • Crypto Exchanges
  • Government & Regulatory Bodies
  • C-Level & Directors
  • Blockchain & Crypto Pioneers
  • Defi & NFT Projects
  • VCs, Family Offices, Investors & Business Leaders
  • Crypto Community and Influencers
  • Renowned Media Agencies

For more information on Money Expo 2023, visit https://moneyexpoindia.com/mumbai/

Company Name: Trasol Events Pvt Ltd

Contact Name: Jovita Ephrem

Mail Id: info@moneyexpoindia.com

VST CoreB Propels the Growth of the Indian Trailer Industry Forward with Its Focus on Innovation and Safety

VST CoreB Propels the Growth of the Indian Trailer Industry Forward with Its Focus on Innovation and Safety

In the last two decades, the trailer industry in India has taken several giant strides and has emerged as an industry that is contributing greatly towards the growth of the Indian economy. The awareness around trailers has also played an important role in several businesses engaging with this industry. As compared to heavy trucks, trailers offer a minimal cost of transportation per tonne per kilometre. Another factor that has propelled the growth of the trailer industry forward is the expansion of the road network in the country.

Today, there are many companies that are a part of the trailer industry in India. The one company, however, that has left an indelible impact in this sector with its innovative practices and the visionary mind of its founding members is VST coreB. The foundation for VST coreB was laid in the year 2019 by Mr. Sitaram Yadav, who serves as the Chairman of the VST United Group. Currently, Vikas Yadav serves as the MD & CEO of VST coreB. The responsibilities of the company as a MD & COO are shouldered upon by Vijay Yadav.

 

Talking about what separates VST coreB from other companies in the industry, Vikas Yadav, CEO & MD, says, “We specialize in making technology-driven products that cater to the needs or demands of our clients. We have always believed that one must keep a close watch on the ever-changing technological landscape and adapt accordingly. The products offered by us boast of high-end efficiency. Our trailers are characterized by minimal fuel combustion, advanced breaking mechanism and produce limited carbon emissions. We make it a point to use high-quality components while putting together our trailers.”

VST coreB has its headquarters in Kotputli, a small city in Rajasthan that serves as the base for some of the biggest infrastructural projects in the country. Among other things, VST coreB is known to be a company that prioritizes safety procedures over other everything. When a business organization invests in the trailers manufactured by VST coreB, they know they can be sure about the safety of their goods. VST coreB trailers being best trailer manufacturer in India, equipped to cater National Logistics Policy for maximising growth.

“Safety has always been our biggest priority. For implementing safety-based procedures, too, we resort to technology. We have discovered and implemented several unique safety techniques which have been replicated by other companies based in this industry. We have also put together presentations and organized seminars to create awareness of how well-designed safety procedures can be used to avoid accidents. We have conducted extensive research on driving behaviour or pattern of driving professionals and corrected them as and when necessary. We have also installed advanced tools like object detection sensors in our trailers in a bid to add another layer of safety to them”, says Vikas.

The initiatives taken up by top trailer manufacturer VST coreB always become a subject of discussion in the trailer industry. Apart from having a highly professional approach to doing this, the company is known for leading the industry with its innovative methods and techniques. When a business organization collaborates with VST coreB, they get assured of timely deliveries or supplies. The company also specializes in making customized products that are offered at very economical prices. VST coreB trailers is working towards catering national logistics policies to help consumers to speed up their efficiency, accelerate their production and operation processes and breakdown their cost and time effectively.

The evolution of the Indian economy in 2022-2023 according to Mandhir Singh Todd

The evolution of the Indian economy in 2022-2023 according to Mandhir Singh Todd

In an economic context that has been globally complex, where many countries have experienced record inflationary numbers, India not only manages to avoid the prolonged inflationary scenario, but also, according to studies, it is on its way to becoming the economy of fastest growing in the world, according to the Reserve Bank of India (RBI). Mandhir Singh Todd explains everything about the current economic situation in India and its projections for 2023.

India and a recovering economy, according to Mandhir Singh Todd

According Mikey Todd, although it is inevitable that the geopolitical tensions caused by the war in Ukraine will affect the Indian economy in the way they are doing worldwide. The country is also experiencing a context of reactivation of economic growth, to which is added the excellent planting season to increase the expectations that rural demand and urban spending will be able to equalize. Regarding inflation, which is the data generating concern throughout the planet, in India, it has come to exceed 7%. Regarding this data, the RBI has maintained that the worst is over. However, they argued that it is necessary to maintain moderation in the prices of raw materials over time, as well as a relief in the supply chain, in order to avoid a greater problem in inflation.

The role of oil

Mandhir Singh Todd explains that another of the interesting facts that the RBI has sustained is related to the high prices of crude oil, India being one of the main producing countries of this in the world. Considering its impact on the country’s current account deficit, it will widen to 2.3% in total in 2022 that provides the assumption that the oil price reaches $105 per barrel be met.

IMF projections for India and the world

Recently, explains Mandhir Singh Todd, the International Monetary Fund (IMF) has cut its economic growth forecast for India for fiscal year 23, by 0.6 percentage points, placing it at a maximum of 6.8%. This is in a context in which both the IMF and other international financial agencies ensure that the global economic crisis has not yet reached its worst moment.

In this sense, Mikey Todd says that the IMF had forecast a 7.4% GDP growth for India in July 2022 in the fiscal year beginning in April 2022. However, that projection was lower than that established in January 2022. The same year, which was 8.2%. In FY21-22, India achieved growth of 8.7%, especially related to the low base effect caused by the coronavirus pandemic lockdown in FY20-21.

Now, in the annual World Economic Outlook report, released in October, the IMF said the outlook for India in FY22 is 6.8%, reflecting a weaker-than-expected result in the second quarter, as well as lower external demand. These data given in a context in which global economic projections reflect considerable slowdowns for large economies. An example is a contraction of GDP in the United States during the first half of 2022, as well as a contraction of the Eurozone in the second half and the closures in China due to the prolonged outbreaks of Covid-19 that led to a crisis in the real estate sector in that country.