The Business Bytes
TBB BUREAU
MUMBAI, NOV 13, 2023
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.
‘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.
“We have created ‘Sumpoorn’ with Jocata, that carries an index measuring economic activity of the MSMEs leveraging the GST data. The underlying authentic data of GST provides credibility to the Index. With time, the same can be expanded to include more dimensions. I hope the Index shall be of value to the readers and provide a rich perspective on the prevalent trends of the MSME sector,” said Sivasubramanian Ramann, Chairman & Managing Director, SIDBI.
