Introduction

Digital Public Infrastructure is changing the way India’s Micro, Small, and Medium Enterprises (MSMEs) interact with formal systems, obtain credit, and discover new markets. The use of Digital Public Infrastructure in bridging the long-standing MSME gaps is increasing by the day, right from Udyam registration to UPI payments.

How Digital Public Infrastructure Helps MSMEs

Formalising Informal Businesses

MSMEs had been operating informally for years without registration or tax filings and no access to schemes. Today, even a small vendor can easily formalize their business by using platforms such as Aadhaar, GSTN, and Udyam. This means that the vendor is now able to get credit, subsidies, and other essential services.

Easier Access to Finance

To get a loan, one had to go through a lot of paperwork before. But now, due to Digital Public Infrastructure such as the Account Aggregator framework and OCEN, MSMEs can digitally and securely share their financial data, thus eliminating the physical presence, building digital trust, and increasing the eligibility of the loan. This makes the process of financing much faster and more inclusive.

Connecting to Markets Digitally

By using the open network for digital commerce (ONDC) and unified payments interface (UPI) small businesses are able to sell their products across the country and accept payments from anybody digitally. This not only provides them with increased visibility and income but also allows them to continue creating a digital transaction history, which in turn supports the formal credit.

Conclusion

Digital Public Infrastructure is the connector between MSMEs and scalable growth. Facilitating formalisation, providing access to financial resources, and creating digital markets, DPI is empowering small businesses to flourish within a connected economy. The Indian economic engine will be at its strongest as more MSMEs become digital.