MSMEs drive India's growth engine: Empowering through innovation and digital transformation

Forbes India, in partnership with PhonePe Payment Gateway (PhonePe PG), hosted the fourth pre-event huddle of the marquee Small Business Summit in Pune, a city known for its burgeoning MSME ecosystem. Pune, which is home to over 4.5 lakh small enterprises across sectors like food processing, textiles, and services, exemplifies India’s entrepreneurial drive and dynamism.

Themed “Pune Means Progress: Embracing New Innovations in India’s MSME Capital”, the event spotlighted strategies for sustainable growth and digital transformation through insightful panel discussions, keynote addresses, and a ceremony honouring Pune’s pioneering entrepreneurs.

Blending Tradition and Innovation

Evolving from its roots in automotive engineering to a thriving IT and services hub, Pune has become a fertile ground for both legacy industries and cutting-edge digital innovations. "This city exemplifies how business ecosystems can work seamlessly, combining traditional skills with new-age technologies like AI, automation, and digital payments," remarked Ankit Gaur, Head, Payment Gateway and Online Merchants at PhonePe, in his opening address. He underscored Pune’s role as a regional powerhouse in India’s growth story, noting that digital payments are levelling the playing field, giving small businesses the same financial tools as larger corporations. Before concluding, he commended Pune’s MSMEs for their adaptability and resilience and called for a shared commitment to innovation and collaboration.

Thinking Big and Scaling Up

The first panel discussion of the Forbes India Small Business Summit in Pune, "Empowering MSMEs to Think Big and Scale Up”, featured a diverse line-up of industry leaders - Shruti Mishra, Deputy Editor at CNBC-TV18 (Moderator); Shantanu Bhadkamkar, Chairman of Assocham Maharashtra State Development Council; Vishal Vithal Kamat, Chairman of CII Maharashtra; Hari P. Srivastava, Founder Director and Vice Chairman of Deccan Chamber of Commerce, Industries and Agriculture Ltd (DCCIA); Rujuta Jagtap, Executive Council Mahratta Chamber of Commerce and Industries & Agriculture & ED, Saj Test Plant; Supriya Badve, Chairperson of Women Entrepreneurs, Startups and Innovation Committee of Deccan Chamber of Commerce; and Ashish Bhalla, Regional Business Head at DTDC.

The panellists shared insights into the transformative power of digitalization, particularly through affordable SaaS solutions and digital tools that help MSMEs streamline operations and reach broader markets. They emphasized the importance of a growth mind-set and long-term vision, as facets that are crucial for scaling sustainably.

Challenges, like limited access to formal credit, restricted working capital, and complex government subsidies were also discussed as the panellists stressed the need for an ecosystem that supports MSMEs in transitioning from survival to growth. They highlighted the need for creativity, innovation, and a culture that values both success and failure as essential elements for sustainable leadership and expansion. Pune’s skilled talent pool and growing logistics infrastructure were also celebrated as critical enablers for MSME success, transforming the city into a logistics powerhouse capable of supporting diverse business needs.

Small, Smart, Sustainable - Maharashtra’s MSME Digital Future

Up next was a panel discussion titled "Small, Smart, Sustainable: How Maharashtra’s MSMEs Can Pioneer a Digital Future”, which featured esteemed entrepreneurial talent - Amit Sarda, MD of SoulFlower; Harsh Parekh, Co-Founder of API Holdings (Pharmeasy); Sreejith Moolayil, Co-Founder & COO of True Elements; Pradeep Krishnakumar, Co-Founder of Zouk; Janhavi Chitale, CIO of Chitale Bandhu Mithaiwale and Ankit Gaur, Head, Payment Gateway and Online Merchants, PhonePe.

These domain leaders discussed how MSMEs can lead in digital adoption and sustainability, emphasizing that digital payments and technology have reshaped MSMEs, enhancing transparency in transactions and enabling access to formal credit. This digital shift is empowering small businesses to build credibility with creditors and expand sustainably.

The panellists advocated for a collaborative approach to digital transformation. By working with digital partners, MSMEs can use tools across HR, payments, and operations to increase flexibility and adaptability. Such partnerships are especially valuable in industries like logistics and healthcare, where seamless collaboration can help overcome scaling challenges.

The discussion also unveiled unique customer insight and strategies by each of the enterprise experts. Amongst many others, they highlighted use cases of how deep, personalized analytics boosted customer loyalty and engagement and put a spotlight on the importance of overcoming legacy system limitations by embracing technology as a strategic investment rather than a cost. They concluded that a digital mind-set, suitable digital tools, and collaboration are key for MSMEs to achieve sustainability and global competitiveness.

Bridging the Gap for MSMEs

The chief guest of the event, Shri Rajendra Nimbalkar, IAS, Managing Director of Maharashtra Small Scale Industries Development Corporation Limited (MSSIDC), recognized MSMEs as the backbone of India’s economy in his keynote address. Concluding his address, Shri Nimbalkar commended MSMEs in the audience for their contributions to the economy and expressed his hope for a flourishing entrepreneurial culture driven by innovation and resilience.

Honouring Pioneers in Innovation and Resilience

One of the evening’s highlights was a felicitation ceremony honouring ten outstanding small and medium businesses from the region. These remarkable enterprises—Biddano, True Elements, Wiggles, FITTR, reCharkha-The Eco Social Tribe, Grow Billion Trees, House of Aadyaa, Yewale Amruttulya, Balvvardhak, and Ugaoo—were celebrated for their excellence, resilience, and leadership in innovation and digital transformation, which are key drivers of growth in India’s MSME sector. The resilience and visionary spirit of these businesses serves as an inspiration, showcasing how MSMEs can lead India’s economic transformation.

An Evening of Inspiration and Connection

The event concluded with a networking dinner, allowing Pune’s MSME community to connect, share insights, and celebrate their shared commitment to driving India’s economic future. As Ankit Gaur aptly observed, “If there’s one takeaway today, it’s this: progress happens when we all come together—businesses, policymakers, and enablers.”

The Forbes India Small Business Summit in Pune not only highlighted the city’s progress and potential but also underscored the value of collaboration, innovation, and resilience in empowering India’s MSME sector.

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