Mumbai, Nov 10 (PTI) Jocata, a digital lending transformation platform, has collaborated with SIDBI to launch a one-of-its kind MSME Economic Activity Index – Sumpoorn.
For the first time ever, this MSME specific high-frequency indicator will capture the state of India's growth engine, its MSMEs, that contribute more than a quarter of the country's overall Gross Value Added (GVA) and more than 40 per cent of its total exports, a release said.
The currently available macro indices capture business expectations and rely on opinion or survey-based data.
"It is a relative amplitude adjusted composite diffusion index developed using consent-led and anonymized monthly sales data reflected in official GSTN returns of more than 50,000 credit-seeking MSMEs over time," it said.
A team of credit experts, data scientists and senior economists have built and tracked the Index over the past four years ensuring its ability to accurately represent the MSME economy and capture the impact of macroeconomic conditions, the release added.
"The significance of the MSME sector for the Indian economy is a well acknowledged fact. However, data paucity on the MSME sector often becomes a challenge for industry members and policymakers.
"We at SIDBI have been constantly engaged for the development of the sector and have been partnering with institutions to bridge the information asymmetry to enable informed decision-making by stakeholders. It is in this spirit we have created ‘Sumpoorn’ with Jocata, that carries an index measuring economic activity of the MSMEs leveraging the GST data," said Sivasubramanian Ramann, Chairman & Managing Director at SIDBI.
Prashant Muddu, Managing Director and CEO at Jocata said, Jocata Sumpoorn is a fact-based measure of MSME sales performance representative of the latest economic activity.
"We believe it will address the MSME knowledge gap and empower financial institutions, policymakers, economists and researchers to strategize credit flow and create tailored policies for the sustainable growth of MSMEs across the country," he said.
Jocata has enabled over 50 large financial institutions in India, ASEAN and Middle East embark on their digital transformation journeys. PTI NKD DRR