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The Print
12 hours ago
- Business
- The Print
Assam is wary of digital payments. It's stalling the growth of MSMEs
According to a recent survey conducted by the National Council of Applied Economic Research (NCAER) for the Directorate of Economics and Statistics (DES), Assam, nearly 87 per cent of MSMEs in the state have adopted at least one form of digital payment. This is promising. Assam, like many other states, has witnessed a quiet but notable shift in MSMEs, particularly in the adoption of digital payment systems. From small roadside vendors to urban retail shops, the signs of digital transformation are now visible across the state. QR codes and UPI-based payments are no longer rare. They are part of the new normal. The micro, small, and medium enterprise or MSME sector has long been recognised as a crucial pillar of the Indian economy. Known for its ability to create employment with minimal capital and drive inclusive growth, the sector contributes significantly to local livelihoods and national development. Among medium enterprises, the adoption rate stands at an impressive 95.5 per cent. Small enterprises report an adoption rate of 87.5 per cent, while micro enterprises follow closely at 86.7 per cent. These figures signal a high level of digital readiness and a willingness among entrepreneurs to embrace change. However, a closer examination of transaction data reveals a paradox. While the adoption is high, actual use of digital modes of payment remains relatively low. The NCAER survey shows that only about 31.3 per cent of total transactions for micro enterprises are conducted digitally. Small enterprises fare better, with 51.47 per cent of total transactions being digital, and medium enterprises lead with 76.57 per cent. This wide gap between the adoption and active use of digital payment systems tells a larger story—one where the missing link is not the business owner, but the customer. Why customers don't pay digitally The reality on the ground is that even though MSMEs have installed digital infrastructure, a significant share of their customers still prefer to pay in cash. Whether it is a local grocery store, a tea stall, or a tailoring shop, the digital payment option is often available but rarely used. This reluctance among customers stems from a combination of behavioural, technological, and cultural factors. For many people, particularly in tier-3 towns and rural areas, cash remains a deeply embedded mode of payment. It feels more tangible and trustworthy than a digital transaction that takes place on a screen. Another important barrier is digital literacy. Many customers, especially the elderly or those with limited education, find mobile payment apps difficult to navigate. Others fear fraud or worry that if something goes wrong with the transaction, there is no clear route for recovery. In some cases, customers believe that using cash gives them more flexibility or helps them manage their spending better. This gap between the availability of digital options and their actual use is not just a technological issue. It has far-reaching implications for the MSME ecosystem. Digital payments create financial records that are crucial for accessing credit, applying for government schemes, or building business credibility. Without a strong history of digital transactions, many small businesses remain outside the formal financial system. This makes it harder for them to grow, scale up, or survive during economic shocks. In a region like Assam, where MSMEs are central to employment and income generation, this disconnect could hold back broader development. Also read: Maruti, Kia to Hyundai – why automakers are turning to trains to transport cars Bring MSMEs in digital mainstream It is also worth noting that the Northeast has been identified as a key focus area for India's future growth. Described by Prime Minister Modi as the 'Ashta Lakshmi'—a potential source for the country's eightfold prosperity—the region is expected to play an important role in national progress. For this vision to become a reality, the MSME sector in Assam and neighbouring states must be brought fully into the digital mainstream. This will not happen if digital readiness is limited to business owners alone. Customers must also become active participants in the digital economy. So far, most policy interventions have focused on the supply side—on helping MSMEs adopt digital tools, install QR codes, and attend training sessions. These efforts have delivered encouraging results. But the next phase must address the demand side. There is a need to invest in customer awareness, trust-building, and habit formation. People must be shown that digital payments can be easy, safe, and rewarding. Campaigns in local languages, community-based outreach, and visible grievance redressal systems can all help build public confidence. Above all, digital financial literacy must be treated as a public good—something that empowers citizens and strengthens the economy. MSMEs in Assam have taken an important step toward a digital future. They have embraced technology and demonstrated their willingness to evolve. But unless customers also make this shift, the benefits of digital transformation will remain limited. A truly digital economy cannot be built by businesses alone. It requires customers who are informed, confident, and willing to adopt new behaviours. Every stakeholder—from governments and banks to fintech companies and civil society—must focus on turning digital payments into a habit. The groundwork has been laid, and the opportunity is clear. It is only a matter of bringing the customer on board. Palash Baruah is a fellow at the National Council of Applied Economic Research (NCAER), Delhi. He tweets @DrPalashBaruah. Poonam Munjal is a professor at NCAER. She tweets @poonam_munjal. Views are personal. (Edited by Prasanna Bachchhav)
The Hindu
11-06-2025
- Business
- The Hindu
Mohammed Nazeer posted back as MUDA Commissioner
The State government has posted back for the second time Mohammed Nazeer, Joint Director (selection grade), Directorate of Economics and Statistics as the Commissioner of Mangaluru Urban Development Authority (MUDA) by replacing Noor Zahara Khanum. The government issued a notification to this effect on June 10. Mr. Nazeer was the Commissioner of MUDA earlier too. He was also the Commissioner of Mangaluru City Corporation (MCC) and Managing Director of Mangaluru Smart City Ltd (MSCL). When he was the Commissioner of MUDA, the authority had published 'Mangaluru Darshana' in three volumes in 2016. It was a book on socio-political and cultural history of Mangaluru. It took 18 months to prepare 2,200-page volumes. The work on the project had begun in August, 2014. The MUDA had published the book on the occasion of the authority completing 150 years. Scholar and former Vice-Chancellor of Kannada University, Hampi and Karnataka State Open University, Mysuru, B.A. Vivek Rai was the chief-editor of the book.
Indian Express
29-05-2025
- Business
- Indian Express
Significant increase in output of UP's livestock, fisheries & forestry sectors: District Domestic Product report
The output of the livestock, fisheries, and forestry sectors in Uttar Pradesh witnessed a significant increase, the District Domestic Product (DDP) Estimates report for the financial year 2023-24 has claimed. The state Directorate of Economics and Statistics and the Planning Department, which released the report, said it indicated strengthening of the traditional rural economy and expansion in the means of livelihood. According to the report, the State's Gross Domestic Product (GSDP) stood at Rs 25.63 lakh crore in the financial year, with the livestock sector contributing Rs 1.67 lakh crore, accounting for 7.1% of the Gross State Value Added (GSVA), the government said. The forestry sector contributed Rs 25,859 crore during the period, reflecting a 3.9% growth compared to the previous year. The fisheries sub-sector witnessed an increase of 34.1%, contributing Rs 19,071 crore. In the livestock sector, the five districts making the highest contribution to the GSVA are Bulandshahar, Meerut, Aligarh, Agra and Saharanpur. The districts witnessing the highest growth in GVA for this sub-sector include Mahoba (42.1%), Jhansi (41.1%), Ambedkar Nagar (36.2%), Ayodhya (34.1%) and Lalitpur (34.1%), the report added. Among the major livestock products, milk holds the largest share, contributing 83.3% to the livestock sector GVA, the report further claimed. Uttar Pradesh remains the leading state in milk production, achieving a total of 388 lakh metric tonnes in 2023-24, marking a 7% increase from the previous year, it said. The state accounts for 16.2% of national milk production. The state's contribution in national egg production increased from 3.29% in 2022-23 to 4.15% in 2023-24, showing a growth of 29.9% against 12.8% the previous year. The top five districts in milk production in 2023-24 were Bulandshahar, Meerut, Agra, Aligarh and Azamgarh. In the fisheries sector, fish production increased to 11.56 lakh metric tonne (MT) in 2023-24, registering a growth of 26.4%. The state contributed 8.3% to the total inland fish production in the country. The sector contributed Rs 19,071 crore in the Gross State Value Added. The top five districts in inland fish production were Gorakhpur, Bahraich, Hardoi, Etah and Mahoba. The forestry sector remained a key contributor to the state's economy, with its GVA standing at Rs 25,859 crore for 2023-24. The top five districts in terms of highest forestry GVA contribution were Lakhimpur Kheri (Rs 1,255 crore), Sonbhadra (Rs 1,115 crore), Saharanpur (Rs 827 crore), and Pilibhit (Rs 815 crore). They collectively accounted for 20% of the state's total forestry GVA. Also, the districts showing the highest growth in forestry GVA were Kanpur Nagar (14.1%), Sant Kabir Nagar (12.4%), Moradabad (11.2%), Ghazipur (10.9%), and Hathras (10.1%), the report said.
The Hindu
21-05-2025
- Politics
- The Hindu
75th anniversary of National Sample Survey celebrated in Krishnankoil
National Statistics Office (NSO) Sub-Regional Office at Virudhunagar installed a bilingual standee at Krishnankoil Bus Stop on Wednesday to commemorate the 75th anniversary of National Sample Survey. The standee was inaugurated by Deputy Director, Directorate of Economics and Statistics (DES), G. Sundari in the presence of Assistant Director of NSO, Virudhunagar, V. Rethinam, and Assistant Director of Agriculture G. Dhanalakshmi. Besides the staff of NSO, students and members of the general public also took part in the event. The standee would display 17 sustainable development goals formulated by the United Nations. The theme for the 75th anniversary celebration is 'From the Glorious Past to the Promising Future of Viksit Bharat.' The Assistant Director sought cooperation from the local officials and members of general public for the smooth conduct of NSS surveys.
Indian Express
30-04-2025
- Business
- Indian Express
At 6.2%, Delhi records slowest economic growth since 2021-22
Delhi's economic growth slowed down in financial year (FY) 2024-25, with real Gross Domestic Product (GDP) growing by 6.2%, as compared to 9.16% in the previous year, the government's most recent estimates showed. This was the slowest growth recorded by the city since FY 2021-22. The data is part of the Estimates of State Domestic Product 2024-25 released by the Directorate of Economics and Statistics recently. This data is significant since the state Economic Survey, which provides insights into the Capital's financial health and is presented before the Budget, was not released this year. The GDP, the total monetary value of all goods and services produced over a year, serves as a key indicator of the region's economic performance and growth. Advanced estimates are released before the end of a financial year. It is the government's forecast of how the economy will perform based on data gathered up to that period. 'Post-pandemic years saw higher growth because of the base effect… there was very low growth during the Covid-19 pandemic. Now that the base effect is waning, we are seeing growth moderating. Due to inflation inching very high, people are also spending less on discretionary items,' said Paras Jasrai, Associate Director of India Ratings. Delhi 's slowdown is in line with the slowdown India witnessed in the same period — India's growth rate also decelerated from 9.2% to 6.5% in a year. The size of Delhi's economy grew to Rs 7.11 lakh crore last year from Rs 6.69 lakh crore in the previous year. Delhi's per capita income is Rs 4.93 lakh, which grew at 7.32% last year, much slower than the 10.11% it grew at the year before that. In 2011-12, Delhi's per capita income was almost thrice the national average. However, over time, this gap has narrowed with the national average growing at a faster pace. Delhi's per capita income is now around two-and-a-half times higher than India's national average of Rs 2.05 lakh. The deceleration of the growth is primarily driven by the secondary and tertiary sector, the report showed. The tertiary sector, which includes services such as transport, banking, hospitality, and tourism, among others, and contributes close to 85% of Delhi's economy, grew only at 6.5%, as compared to 8.8% the year before that. This sector's growth slowed down the previous year as well, from a high of 10.27% in 2022-23. Within the tertiary sector – transport, storage and communications, and services incidental to transport – have fared particularly badly last year, with their growth rates halving. Growth rate of real estate, ownership of dwellings and professional services, which contributes roughly 30% to Delhi's economy alone, has fallen from 13.3% to 6.2% in the past three financial years. 'After the pandemic, we saw many people buying houses as there was pent up demand. Now, we are seeing overall house sales growth moderating,' Jasrai said. The secondary sector (primarily manufacturing and construction), which contributes roughly 13% to the economy, also witnessed a slowdown from 9.68% in FY 2023-24 to 5.32% in FY 2024-25. Electricity, gas, water supply and other utility services were the segment hit the hardest in the secondary sector, the report showed.
