The Small Industries Development Bank of India (SIDBI) has partnered with Jocata, a digital lending transformation platform, to launch a groundbreaking initiative named ‘Sumpoorn’—a unique MSME Economic Activity Index. This index aims to provide a real-time snapshot of India’s vital MSME sector, which contributes significantly to the country’s Gross Value Added (GVA) and exports.
Objective of the Index:
Unlike existing macro indices that rely on subjective opinions and survey data, ‘Sumpoorn’ is designed as a high-frequency indicator specifically tailored for the MSME segment. The index utilizes consent-led and anonymized monthly sales data from over 50,000 credit-seeking MSMEs, as reflected in official GSTN returns.
A collaborative effort by a team of credit experts, data scientists, and senior economists, the ‘Sumpoorn’ Index has been meticulously developed and tracked over the past four years. This ensures its accuracy in representing the MSME economy and its ability to capture the nuanced impact of macroeconomic conditions.
The index relies on monthly sales data obtained from the Goods and Services Tax Network (GSTN) returns of credit-seeking MSMEs. This data is analyzed to create a relative amplitude-adjusted composite diffusion index, providing a comprehensive view of the economic activity within the MSME sector.
Significance for the Indian Economy:
Given the acknowledged importance of the MSME sector in India, SIDBI emphasizes the need to bridge the information gap that often hinders informed decision-making by industry stakeholders and policymakers. ‘Sumpoorn’ is positioned as a solution to this challenge, leveraging GST data to offer a reliable measure of MSME economic activity.