Eight in Ten Indian MSMEs Grew in 2025 as Digital Payments and AI Drive Expansion: Report
Indian small businesses delivered their strongest performance since before the COVID-19 pandemic in 2025, supported by growing digital adoption, increased investment in artificial intelligence (AI), and strong domestic demand, according to CPA Australia's Asia-Pacific Small Business Survey 2025/26.
The survey found that 80% of Indian small businesses reported growth in 2025, significantly higher than the Asia-Pacific average of 63%. Confidence also remains strong heading into 2026, with 87% of respondents expecting their business to grow and 84% anticipating growth in the broader economy. Improvements in customer experience and technology adoption were identified as major contributors to last year's performance.
The findings align with broader indicators of MSME resilience in India. Recent government data has shown continued growth in Udyam registrations, while policymakers have increasingly positioned the sector as a key driver of employment generation, exports, and economic growth. MSMEs contribute nearly 30% of India's GDP and account for a significant...
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