India’s next phase of economic growth could increasingly depend on connecting its fragmented B2B digital systems, with an interoperable national infrastructure potentially improving transaction efficiency, unlocking working capital and widening formal credit access for millions of MSMEs, according to a report by Bain & Company and NPCI Bharat BillPay Limited (NBBL).

A connected B2B ecosystem could help businesses move beyond the current fragmentation across enterprise resource planning systems, banks, invoices and payment platforms, creating a trusted information trail that allows capital to follow genuine economic activity, according to the report. It envisages an interoperable layer that could eventually function as an “India B2B Operating system” and support the country's journey towards Viksit Bharat.

The Challenge of Fragmentation and its Impact

India’s formal business sector contributes about 45 per cent of real Gross Value Added (GVA), compared with more than 70 per cent across major global economies. The report noted that India has already digitised individual components of its business ecosystem, including payments, commerce, credit, compliance and information exchange, but these systems often operate in isolation. This disconnection has significant implications for MSMEs.

Bain-NBBL estimates that India faces a credit shortfall of more than Rs 60 lakh crore, with over 70 per cent of the gap representing short-term working-capital demand. Formal channels meet only around 30–40 per cent of debt demand among smaller enterprises.

A Proposed Interoperable Solution

The proposed interoperable layer would connect business systems, banks and financiers through standardised APIs and create a common, machine-readable record covering invoices, payments and other trade information. This could automate reconciliation, reduce manual processing and provide lenders with verified transaction data for cash-flow-based underwriting.

The report estimates that buyer-confirmed invoices could convert around Rs 8 lakh crore of delayed MSME receivables into financeable records, potentially benefiting around 8 crore MSMEs that collectively contribute about 30 per cent of GDP.

Leveraging Advanced Technology

Advanced analytics and generative AI could further enable cash-flow intelligence, dynamic risk scoring and agentic credit underwriting.

Achieving Scale and Governance

However, Bain-NBBL cautioned that achieving scale would require coordinated action, including central recognition, simple technology integration, anchor-led onboarding and clarity on liability and data-sharing. A neutral, open and regulated national entity could provide the governance framework needed to build trust and overcome the initial cold-start challenge. (ANI)