Overview

The Indian business environment is undergoing a fundamental shift driven by heightened competition, evolving consumer expectations, digital disruption and geopolitical uncertainty. For MSMEs and startups, the challenge has moved beyond merely generating sales to building organisations that can withstand market fluctuations, manage costs and sustain growth.

Consumer Behaviour and Payments

Over the past decade, Indian consumers have become more informed, digitally connected and selective. While price remains important, factors such as convenience, product quality, brand trust, online reviews and overall customer experience now heavily influence purchasing decisions. Reflecting this shift, UPI transaction volume expanded dramatically from roughly 1.78 crore in FY 2016‑17 to more than 24,162 crore in FY 2025‑26, underscoring the rapid evolution of consumer payment habits.

Household Spending Patterns

According to the Government’s Household Consumption Expenditure Survey 2023‑24, non‑food expenditure constitutes about 53 % of rural and 60 % of urban household consumption, signalling expanding opportunities beyond traditional product categories while also requiring businesses to understand where customers are allocating their spending.

International Trade Exposure

India’s trade with Gulf Cooperation Council (GCC) countries reached approximately US$178.56 billion in FY 2024‑25. The ongoing West Asia conflict has highlighted how international events can disrupt shipping, energy supplies, freight costs and overall trade flows, exposing Indian manufacturers and other businesses that rely on imported raw materials to heightened supply‑chain risk.

Impact on MSMEs

CRISIL Intelligence projects that the West Asia conflict could moderate MSME revenue growth by 100 basis points in FY 2026‑27 and compress operating margins by 50‑100 basis points over the same period. This underscores the need for MSMEs to move beyond traditional selling methods and past successes.

Consultant Profile – Avilash Dhar

Kolkata‑based Avilash Dhar brings nearly a decade of corporate experience across FMCG and commodities. At AWL Agro Business Ltd (formerly Adani Wilmar Limited), he contributed to a three‑fold increase in sales over roughly four to five years, handling modern trade, e‑commerce, multi‑state commodity markets, regional consumer behaviour, seasonality, team management, distribution and cross‑functional coordination. He holds an MBA and has pursued additional learning in digital marketing and artificial intelligence.

Consulting Approach

Now operating as an independent business consultant, Dhar works with startups, MSMEs and established firms across FMCG, financial services, beverages and other sectors. His ambition is to help companies build robust businesses, strengthen existing operations and create systems that support long‑term expansion. His methodology begins with a holistic assessment of a business’s financial structure, market positioning, customers, people, processes and growth potential. He identifies bottlenecks, prioritises practical improvements and crafts strategies tailored to each organisation rather than applying generic solutions.

Guidance for Entrepreneurs

For new ventures, Dhar advises establishing the right sales channels, building efficient distribution networks, positioning the brand effectively, acquiring customers strategically and instituting sustainable operating systems. For established businesses, he stresses pinpointing growth‑restricting factors and addressing them before committing additional resources.

Strategic Imperative

As India’s entrepreneurial ecosystem becomes increasingly competitive, firms that combine deep market understanding with disciplined strategic execution will be best positioned to create lasting value. Building a business that can thrive independently of its founder is presented as the key to enduring success.

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