Digital India fillip for IT MSMEs

Micro, small and medium enterprises (MSMEs) offering information technology (IT) and IT enabled services (ITeS) stand to gain significantly from Digital India, the government’s flagship programme for transforming the country into a digitally empowered society and knowledge economy.

An analysis of 128 CRISIL-rated MSMEs in the IT sector shows that they chalked up a compound annual growth rate of 23 per cent in revenue between 2012-13 and 2014-15, riding on a surge in sales from Rs 14.89 crore to Rs 22.42 crore.

CRISIL believes these MSMEs will gain further from Digital India, which aims to ensure digital empowerment of citizens by strengthening public IT infrastructure, improving governance and providing services on demand. Indeed, these units will have an edge given their strong local presence, understanding and service capabilities. Besides, their open source technology platforms and low-cost employee base will enable them to compete with their larger counterparts in offering social, mobility, analytics and cloud applications and technologies.

 

Note: This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy. CRISIL has rated over 91,000 MSMEs in India.