Indian MSMEs: The New Investment Frontier

Indian micro, small, and medium enterprises (MSMEs) are poised to become a major focal point for investments, particularly from private equity and venture capital firms, in the next five years. This optimism is fueled by the country's projected economic growth despite ongoing geopolitical issues.

Economists are confident that India's growth will continue unabated, turning MSMEs into an attractive opportunity for investors. Holani Venture Capital Fund representatives have pointed to these businesses as key players in increasing the national GDP share to 40% by 2030.

Chief Investment Officer Ashok Holani emphasized that MSMEs engaging in new product launches, diversifying their offerings, acquiring businesses, and innovating will draw significant investor interest. The sector's potential for growth signals both vast opportunities and a transformational journey in the coming years.

(With inputs from agencies.)