New Delhi, Dec 16 (KNN) Federation of Indian Chambers of Commerce and Industry (FICCI), in partnership with McKinsey & Company, has launched a multi-stakeholder initiative in which it has recommended to double the credit penetration of MSMEs to 80 per cent and reduce cost of commercial borrowing by launching use cases of the Account Aggregator framework.

With an aim to catalyse actions to achieve the country’s full economic potential, the paper suggests promotion of co-lending, creation of digital securities for physical collaterals and customization of NPA standards for MSMEs based on sector specific cash-flow cycles.

Titled as ‘India’s Century – Achieving sustainable, inclusive growth,’ the paper identifies that India has a ‘missing middle’ – a dearth of midsized firms that typically grow into formidable competitors for large companies.

This gap can be addressed with easier access to low-cost capital with digital lending solutions that leverage the Account Aggregator and Open Credit Enablement Network frameworks, simpler one-stop processes to start and run their businesses, and support for resources they cannot always afford to hire, such as in-house lawyers.

A launch paper for the initiative, released on Friday which outlines a roadmap for what India can do to unlock opportunities to achieve sustainable and inclusive growth along key metrics by 2047.

It looks at potentially increasing per capita income six-fold to Rs 10 lakh, achieving 600 million jobs, doubling female participation in the labour force to 45-50 per cent, cutting carbon emissions, and providing access to clean water for all.

With input from over 200 companies, the paper identifies 10 priority sectors for growth over the next 25 years, with a set of over 50 actions for companies and industry bodies, supported by the state and central governments, to unlock that growth.

Sanjiv Mehta, President, FICCI said, “The India’s Century initiative sets out an actionable roadmap for all stakeholders to unleash India’s potential in becoming an economic superpower much before India turns 100. The industry will have to lead the way and build innovative solutions with a lens of People and Planet approach, while the government plays the role of an enabler to nurture the growth and ensure global competitiveness.”

Alok Kshirsagar, Senior Partner, McKinsey & Company said, “Companies in India can now create millions of jobs and value through innovations that capture the full potential of digital transformation, energy transition, modern infrastructure development, and realignment of global supply chains. The India’s Century initiative provides a practical roadmap for 10 industry sectors and the capabilities required to deliver sustainable and inclusive growth for our country.”

For full report, visit the ‘India’s Century’ website: www.india-century.com  (KNN Bureau)