Micro, small and medium enterprises (MSMEs) in Uttar Pradesh stand to benefit immensely from cloud-based technology services being offered under a new initiative specifically for the sector. CRISIL believes the initiative from Microsoft will help these units manage their costs and functions more effectively, leading to productivity growth. It will also help them connect better with suppliers, distributors and government agencies, and enhance geographical reach.
Uttar Pradesh has the largest number of registered MSMEs in India, as per the MSME ministry’s Annual Report for 2014-15.
CRISIL analysed over 1,200 MSMEs operating in the state to gauge the level of technology usage. About 64 per cent were found to use technology.
The analysis revealed that MSMEs using technology to promote their products and services demonstrate a compound annual growth rate of 26 per cent, compared with just 12 per cent for MSMEs which do not.
Note: This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy. CRISIL has rated over 75,000 MSMEs in India. The analysis is based on the latest audited financial statements (i.e. 2013-14) of CRISIL-rated MSMEs. Most enterprises finalise their audited financials for the previous financial year by the end of the third/fourth quarter of the current one.
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