SIDBI Flags ₹30 Lakh Crore Credit Gap for MSMEs, Calls for Sector-Focused Policies and Digital Push

Even with an ongoing government credit push, India's MSME segment continues to have a gargantuan ₹30 lakh crore credit gap, as per the latest SIDBI report. This gap is particularly pronounced for women and service sector MSMEs, and for sectors such as readymade garments, grocery retail, food processing, and IT/ITeS that need specific policy interventions.

 

The survey of more than 2,000 MSMEs reflects that even though 90% accept digital payments, just 18% have used digital lending, and 35% do not get registered because of a lack of knowledge and fear of being scrutinized. Most micro enterprises continue to depend on informal loans, and 12% use such sources compared to only 2-3% for larger MSMEs.

 

SIDBI Chairman Manoj Mittal stressed the need for timely, structured MSME data and sector-specific policies to bridge the gap and drive sustainable growth towards the Viksit Bharat 2047 vision.

 

Source: Economic Times, Financial Express, SIDBI Report