Home » Blog » Dr. Didar Singh Speaks to Brydgework Consultants on Why the Future of Enterprise Lies Beyond the Metros

As India’s digital economy matures, the focus is slowly shifting from saturated metropolitan markets to the untapped potential of Tier 2 and Tier 3 regions. With rising aspirations, expanding connectivity, and a growing population of young, digitally native consumers, small-town India is poised to become the engine of the country’s next phase of economic growth. But unlocking this opportunity requires more than just technology. it calls for systemic thinking, locally rooted ecosystems, and policy frameworks that prioritise inclusion over scale.

In this wide-ranging conversation, Pallav Singh of Brydgework Consultants speaks with Dr A. Didar Singh, former IAS officer, noted migration policy expert, and author of E-Commerce In India: Assessments And Strategies For The Developing World; about the true promise of digital commerce, the role of grassroots consulting, and why the next wave of enterprise development in India will be shaped in village clusters and small industrial towns, not in boardrooms. Dr Singh, who also served as Secretary General of Federation of Indian Chambers of Commerce and Industry (FICCI) and continues to advise multilateral agencies on migration and development, offers a grounded yet forward-looking view of how India can build a truly inclusive digital economy.

Firstly, we know you have written extensively on e-commerce, even before India’s digital boom, so like, how do you see the digital commerce transforming opportunity in Tier Two and Tier Three India?

“The real story of digital commerce in India is not in Mumbai or Bangalore; it is in Moradabad and Barpeta.”

When I first started writing on e-commerce, much of it was speculative; we were imagining futures. Today, that imagined future has arrived, but only partially and unevenly. The metro cities have captured the early gains, but the real transformative power of digital commerce lies in Tier 2 and Tier 3 India, where aspirations are high, connectivity is improving, and the demographic dividend is playing out on the ground.

Let me put it in perspective. These cities and towns are where 60 to 70 percent of India’s consumer base actually resides. They are younger, more aspirational, and increasingly digital-first due to the penetration of smartphones and affordable data. However, digital commerce has not yet fully adapted to their realities. Language, logistics, trust in digital payments, and the lack of locally contextualized content are still barriers.

Yet, this is precisely where the opportunity lies. We are moving from a demand-driven model to a demand-creation model. When platforms and policies start speaking the language of Bharat, literally and metaphorically, we will witness a surge. The next big wave of digital commerce will come not from expanding the market but from transforming the way rural and small-town India participates in it. Think of a weaver in Bhadohi, a handicraft seller in Imphal, or a small dairy entrepreneur in Nagaur having access to national and even global markets through e-commerce platforms that understand their needs.

But this requires more than just apps and websites. It demands enabling infrastructure, digital skilling, localized logistics, and trust-building mechanisms. We need to build a digital ecosystem, not just a marketplace.

So, to your question, yes, the potential is massive. But to unlock it, we need a Bharat-focused digital commerce policy that understands the unique needs of these regions, not as afterthoughts, but as the very core of the strategy.

What have you observed as the biggest gaps between national policy and the lived experience of small entrepreneurs?

One of the biggest gaps is the assumption of readiness. National policies often presume that small entrepreneurs are digitally literate, have access to credit, understand compliance, and can navigate platforms. But on the ground, most face systemic challenges, lack of awareness, language barriers, weak logistics, and minimal handholding.

Another gap is fragmentation. Policies come from different ministries; Commerce, MSME, and IT, but the small entrepreneur needs a seamless support system. Their experience is local, but policy is often top-down and disconnected from grassroots realities.

As a result, small enterprises are almost always on the back foot. They rarely find themselves at the frontlines of innovation or market access. Instead, they struggle to catch up, often reacting rather than shaping their own trajectory.

To bridge this, we need last-mile policy translation, mentorship, digital onboarding, and ecosystem-level partnerships that meet the entrepreneur where they are, not where we wish they were.

How do you see the government playing a part in this? Like, do you find that the government is playing on the front foot, helping smaller entrepreneurs? The government has tried for many years, has it worked?

The government has certainly made efforts through schemes like Startup India, Digital India, and MUDRA loans, but the impact at the grassroots remains limited. The intention is there, but execution lacks depth and continuity.

Often, policies are announced with enthusiasm but lose momentum in delivery, especially when it comes to small entrepreneurs in Tier 2 and Tier 3 cities and rural areas. The system still rewards large-scale players who can navigate bureaucracy and compliance.

So, no, the government is not yet on the front foot. It is reactive, not anticipatory. To truly help small entrepreneurs, the government, especially state governments, must shift from a scheme-driven approach to an ecosystem-driven approach, with real-time data, localized support structures, and long-term policy consistency.

What role do you see for intermediaries, basically consultancies, in the coming decade?

Intermediaries like grassroots consultants have a vital role to play in the coming decade, far beyond what NGOs alone have done so far. When you enter small towns or micro-industrial zones, you are stepping into spaces that mainstream consulting has largely ignored. These areas are not saturated. In fact, they offer untapped potential where the need for advisory, facilitation, and policy translation is immense.

Unlike traditional NGOs, grassroots consultants bring a market-first mindset with policy literacy. They can bridge the trust gap between the state, the entrepreneur, and the digital economy. Their proximity to ground realities gives them a unique position. They are not just advisors; they are enablers of change.

Now, coming to digital adoption by MSMEs, the challenge is that most small entrepreneurs still see it as a tool for transactions, not transformation. They often do not realize the strategic value of digital tools in improving productivity, accessing markets, or building competitive advantage. The root cause is limited awareness and education. In a democracy like ours, where formal education is uneven, digital literacy becomes the new frontier of inequality.

This is where intermediaries must step in, not just to onboard MSMEs onto platforms but to build their understanding of digital as a business capability. It is about helping them move from using UPI to using analytics, from selling locally to building resilient supply chains. That shift, from access to agency, is where the real work lies.

In short, the coming decade belongs to those who can stand at the intersection of grassroots enterprise, digital transition, and inclusive growth and help connect them all.

What is your remark on public-private partnership? What does a public-private partnership look like in the context of microenterprise development?

A healthy public-private partnership for microenterprise development is not just desirable; it is essential. It brings together the scale of government with the speed, innovation, and market understanding of private players. In theory, this model holds great promise. In practice, however, it has rarely materialized effectively, at least not in the last 10 to 15 years.

Despite the intent, real collaboration has been missing on the ground. Government schemes exist, private interest exists, and even grassroots energy exists, but the alignment among them has not happened in a structured, sustained way. Consulting and intermediary organizations could play a critical role here by creating the connective tissue between these players, translating policy into action, and ensuring that local voices inform strategy.

That said, there are some signs of change. E-commerce, for instance, has slowly but steadily reached small towns and even rural areas. The digital rails are being laid. What we now need is partnerships that are designed for inclusion, not just efficiency. Public systems must open up to co-creation, while private actors must commit to long-term impact, not just short-term scale.

So yes, it has not happened so far in the way it should have, but with the right mindset, capacity, and facilitation, it can and must happen in the coming years.

How do you see the current dispensation leading this progress? Like the current NDA government? Or is it really the state government that matters much more than the central government?

While the central government often sets the tone and narrative, it is the state governments that ultimately drive real progress on enterprise development. And frankly, many have not fulfilled that role effectively. Policies exist on paper, but the actual implementation has not gone deep enough into departments, districts, and local ecosystems.

International organizations may engage with the central government, but real transformation happens only when states own and drive the agenda. Countries that have succeeded in decentralized innovation, like Germany with its Mittel stand model or Vietnam with its SME clustering, have empowered local institutions and created strong linkages between local industry, policy, and education. India can draw from these approaches, but it must adapt them to its own diversity and complexity.

This is exactly why young, grounded consulting firms like yours have an important role to play. You are entering spaces that are often overlooked, small towns, lesser-known departments, local value chains. This is not just admirable, it is essential. The future of India’s enterprise ecosystem depends on creating a layer of intermediaries that understand both the language of policy and the needs of the grassroots.

So yes, the central government provides vision, but it is the states that must execute. And it is firms like yours that can bridge the distance between the two. Keep going. You are on the right path.

What are the top two areas that we should focus on over the next couple of years, to create a meaningful impact just to education or more so people understand what is required?

If there are two areas to focus on over the next few years to create meaningful impact, they are education and infrastructure.

First, education, not just formal but functional. More and more people need to understand what is actually required to thrive in today’s economy. This includes digital literacy, financial awareness, regulatory understanding, and the ability to engage with modern enterprise systems. Without this foundational knowledge, most small entrepreneurs cannot move beyond survival mode.

Second, infrastructure. This is a sector where the benefits are tangible. People see roads being built, connectivity improving, and services reaching them faster. It builds trust in progress because it delivers visible change. When infrastructure grows, enterprise follows. It opens access to markets, talent, and technology.

Like Brydgework and similar grassroots consultancies, your work lies at the intersection of these two areas, educating local enterprises and helping them plug into evolving infrastructure networks. And yes, sustainability should not be seen as optional, even by small businesses. But to shift that mindset, we need to start with what they can see, feel, and benefit from. Education and infrastructure offer that bridge.

How can we embed sustainability into business thinking at the grassroots level? Many small entrepreneurs still view sustainability as someone else’s responsibility, either the government’s or large corporations’. How do we shift this perception and make sustainability feel relevant and actionable for them?

Embedding sustainability at the grassroots level starts with changing the perception that it is someone else’s responsibility. Most small businesses still see sustainability as a distant or abstract issue, something for the government or large companies to worry about, not something directly linked to their day-to-day survival.

The challenge is mindset. Many expect the government to take the lead, and while policy can guide and support, true sustainability must be internalized. At the grassroots, that shift often happens not through global goals but through local impact, when people begin to see how climate risks affect their water, crops, livelihoods, or health.

In reality, fear will drive the shift faster than regulation. When the effects of climate change become visible and personal, only then does the urgency set in. The role of intermediaries like grassroots consultants is to make sustainability feel local, practical, and business-relevant. It is about showing that sustainable practices are not a burden but a path to resilience, efficiency, and long-term value.

That is how sustainability thinking can begin to take root.

What gives you hope about India’s economic future like, especially from the vantage point of small town India?

What gives me hope about India’s economic future, especially from the vantage point of small-town Bharat, is our democracy. People want development, not as a slogan, but as a necessity. They want to improve their lives, and that desire is strong, widespread, and deeply rooted. It is only a matter of time before this collective aspiration translates into large-scale transformation.

Today, the digital world has made geography less relevant. Even the smallest towns are connected, informed, and increasingly aspirational. This connectivity is accelerating awareness and participation. Small-town India is no longer on the margins. It is entering the mainstream, and soon, it will lead.

And yes, I am genuinely encouraged to see consulting firms like yours entering this space. You are stepping beyond the NGO model and offering structured guidance where it is most needed. That shift, from charity to capability building, is exactly what will help unlock India’s next wave of inclusive growth.