India SME Forum Stresses Festive Season’s Role in MSME Survival

New Delhi, August 21, 2025 – The India SME Forum underscored the vital role of the upcoming festive season for millions of small sellers across the country. With the period contributing nearly 35–40% of annual sales, it is a decisive phase for countless MSMEs that have embraced digital platforms like Amazon, Flipkart, and Meesho. Many sellers have already invested heavily in inventory and logistics to meet the expected festive demand. However, uncertainties such as possible GST slab revisions could weaken consumer sentiment and threaten the stability of millions of businesses that rely on this crucial sales window.

Key Points:

• Festive season represents 35-40% of annual sales for small sellers
• Over 2.5 million small businesses now sell online through marketplaces
• Digital platforms enable 2.5x-3x growth for small town businesses
• MSMEs have already invested in festive inventory and logistics

“Any immediate regulatory changes during this crucial period could devastate small sellers who have already committed their limited resources to festive inventory,” said Vinod Kumar, President, India SME Forum. “E-commerce platformshave been instrumental in digitizing millions of small businesses, perfectly aligning with the Government’s Digital India vision. We urge regulatory bodies to consider the timing of any new compliance requirements, as they could severely impact seller livelihoods during their most critical business period. It is equally important for the government to follow up on the clarion call and announce the slab so that consumers can celebrate in style.”

The Forum emphasized how digital marketplaces have democratized access to nationwide markets for small sellers, enabling them to compete effectively with larger retailers. This digital transformation has been particularly vital for small town businesses, who now reach customers across India.

A business owner, Lakshya Kwatra, Founder of Luusa, shared: “The festive season represents our most critical sales period of the year. Any regulatory disruption during this period wouldn’t just impact our revenue but jeopardize the livelihoods of hundreds of artisans and small manufacturers in our supply chain who depend on this seasonal surge.The success of Indian brands on the world stage has been made possible through the government’s support for digital transformation and platforms like Amazon.”

Another small seller, Amandeep Budhiraja, owner of JustToyz, echoed: “The festive season contributes nearly half of our annual revenue, and we’ve already invested months of preparation.Digital marketplaces like Amazon have allowed small businesses like mine to reach customers across India. Any sudden regulatory changes now would not only threaten our festive sales but disrupt supply and erodetrust in India’s digital marketplaces, potentially setting back thousands of digital-first businesses by years.”

The India SME Forum encourages more small businesses to embrace digital opportunities while requesting regulatory bodies to ensure stable policy environment during critical business periods.