Bullish for IT, Fintech: Indian Small Biz Sees Strongest Growth

A CPA Australia survey reveals that Indian small businesses experienced their best growth in 2025 since the COVID-19 pandemic, with four out of five firms expanding. This growth was primarily fueled by technology adoption and a focus on enhancing customer experience, alongside significant increases in digital payments and e-commerce revenue.

The robust performance of small businesses is a strong indicator of the underlying health and dynamism of the Indian economy. This segment is a major employer and contributor to GDP, and its expansion signals broad-based economic recovery and resilience, despite global uncertainties. It also highlights the accelerating digital transformation across the country.

This trend is broadly positive for Indian IT services companies (e.g., TCS, INFY) that cater to digital transformation needs, as well as fintech companies (e.g., PAYTM) benefiting from increased digital payment adoption. E-commerce platforms and recruitment services (e.g., NAUKRI) could also see increased demand due to business expansion and hiring.

Traders should monitor quarterly results of IT and fintech companies for signs of increased spending from the SME segment. Also, watch for government policies aimed at supporting small businesses, as these could further accelerate their growth. Keep an eye on inflation and interest rates, as rising costs remain a concern for these businesses.

• •Indian small businesses saw their best growth in 2025 since the pandemic.
• •Four out of five firms expanded, with strong expectations for 2026.
• •Technology adoption and customer experience boosted growth.
• •Rising costs and global uncertainty remain key concerns.
• •Hiring increased, and digital payments and e-commerce revenue grew significantly.