MSME’s Sector in India:

With a sustained growth rate of over 10% in the past few years, the MSME’s sector has come to represent the ability of the Indian entrepreneur to innovate and create solutions despite the logistic, social, and resource challenges across the country. As the nation’s largest employer, generating more than 124 Million jobs through close to 56 Million enterprises and contributing 31% of the nation’s GDP and 45% of the country’s overall exports , the relevance and role of the MSME’s sector as the central driving force behind India’s assertive vision to be a dominant global economic power cannot be overemphasized. Given that MSME’s essentially rely on traditional or inherited skills and use of local resources, particularly in rural and industrially underdeveloped areas, the sector has the ability to empower traditionally resource-poor communities and markets to mobilize products and services, both nationally and globally.

Contribution of MSME’s to the Indian Economy

As a key player in generating employment and contributing to the country’s GDP and industrial output, the MSME sector is vital to the growth and development of the Indian economy. MSME’s are critical for local and international supply and value chains and support the progress of larger, more mature consumer markets as suppliers, manufacturers, contractors, distributors, retailers, and service providers.

Broad classification of MSME’s in India:

The Micro, Small and Medium Enterprise(MSME’s) sector is crucial to India’s economy. There are 55.8 Million enterprises in various industries, employing close to124 Million people. Of these, nearly 14 % are women-led enterprises, and close to 59.5% are based in rural areas. In all, the MSME’s sector accounts for 31% of India’s GDP and 45% of exports. Lack of adequate and timely access to finance continues to remain the biggest challenge for this sector and has constrained

its growth. The financing needs of the sector depend on the size of operation, industry, customer segment, and the stage of development. Financial institutions as well as banks  have limited their exposure to the sector because of small ticket size of loans, higher cost of servicing the segment, and limited ability of MSME’s to provide immovable collateral.

  • MSME’s financing sector is expanding and attractive segment for NBFC players like us. Summary MSME’s financing is an attractive sector for investors and industry leaders to be in.
  • With various goverment reforms and supportive schemes in place, the peprospects of MSME’s financing business has improved substantially.
  • Having best team is the best competitive advantage and providing intrapreneurial
    opportunity is one of best way to attract top talent.
  • Essence of our MSME’s financing is to help entrepreneurs by providing them finance their innovative products and services.
  • The sector also provides great investment opportunity for investors given the
    expected growth of MSME’s.