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MNB Research · MSME & manufacturing

India runs on 7.85 crore small businesses. Almost none of them run on software.

MSMEs contribute roughly a third of India's GDP and nearly half its exports. They are also the least automated segment of the economy. This is the gap we build for.

7.85 crore
Registered MSMEs as on 27 February 2026
IBEF, MSME sector page
31.1%
Share of India's GDP contributed by MSMEs
IBEF (undated figure — flagged by source)
48.58%
Share of total Indian exports from MSMEs
IBEF, MSME sector page
32.8 crore
Livelihoods supported — second only to agriculture
IBEF (undated figure)
The analysis

What the numbers actually say

All figures in this section are from IBEF’s MSME sector page unless stated otherwise. MSME exports rose from Rs. 3.95 lakh crore in CY21 to Rs. 12.39 lakh crore in CY25, with 1,73,350 exporting MSMEs recorded in CY25. Registration is concentrated: Maharashtra, Uttar Pradesh and Tamil Nadu together hold roughly 32% of all MSME registrations, Maharashtra alone over 1.01 crore.

The composition matters more than the count

As on 27 February 2026, 42.89% of registered MSMEs were trading enterprises, 36.22% services and 20.89% manufacturing. That distribution is the single most useful fact for anyone selling automation into this market: the majority are trading and service businesses whose bottleneck is order handling, follow-up and reconciliation — not factory-floor robotics.

Credit is no longer the binding constraint

Under Mudra, over 57.79 crore loans worth Rs. 40.07 lakh crore had been sanctioned as of 27 March 2026. TReDS has unlocked over Rs. 7 lakh crore in MSME liquidity. Gross NPAs in the segment had fallen to 2.30% as of September 2025. Capital is reaching these businesses. Operating capability is what has not kept pace.

What we would deploy here

Our products, mapped to this sector

We build and run our own products, in production. These are the ones that fit msme & manufacturing.

YarnTally

The back-office system built for exactly this segment — 19 industry modules, multi-godown stock, GST invoicing, from ₹999 a month.

Explore YarnTally

MNB Cortex

Reads sales, finance, inventory, production and HR in real time, then proposes actions you approve.

Explore MNB Cortex

AuditFlow

Compliance across 30 frameworks, continuous rather than a pre-audit scramble.

Explore AuditFlow

MNB Omni Caller

Outbound and inbound voice in 90+ languages — collections, follow-up, order confirmation.

Explore MNB Omni Caller

Related: AI automation for manufacturing  ·  AI for CA & accounting firms  ·  AI automation by city

Work with us

We do the analysis. Then we build the system.

Most firms hand you a deck. Every engagement here starts with a ₹9,999 AI Transformation Assessment — credited back in full — and ends with software running in your business.

Sources

Every figure on this page is quoted from the source named beside it. Where a source publishes a figure without a date, we say so. Figures are reproduced in rupees where the publisher's dollar conversion was inconsistent.