Credit Gap In MSME Sector Pegged At USD 530 Bn: Report

ENA MSME 2024-07-15 16:45:49 New Delhi, Jul 15 (KNN) In the latest report produced by Avendus Capital, a credit gap of USD 530 billion has been identified in India's Micro, Small, and Medium Enterprises (MSME) sector. The report highlights that only 14 per cent of the country's 63 million small businesses currently have access to formal credit, despite the sector's crucial role in the national economy. MSMEs contribute 30 per cent to India's GDP, account for 48 per cent of exports, and are the second-largest employer after agriculture. Given their importance, industry experts are calling for the upcoming budget to address the sector's financial challenges. The issue of late payments, estimated at 10 lakh crore, is another critical concern. Winny Patro, CEO, Recordent India, advocates for a holistic approach to solve this problem, suggesting the implementation of an MSME data stack to reduce credit risk and standardise payment terms across sectors. Hariom Seth, Founder, Tagglabs, calls for indirect financing measures, including an increased allocation for the Fund of Funds for Start-ups to Rs 15,000 crore. Seth also emphasises the need for skill development initiatives and alternative credit assessment models to improve loan approval rates for MSMEs. As the July 23 budget announcement approaches, the MSME sector eagerly anticipates reforms that could potentially bridge the substantial credit gap and bolster India's economic growth. (KNN Bureau) 38602 https://knnindia.co.in/news/newsdetails/msme/credit-gap-in-msme-sector-pegged-at-usd-530-bn-report 2024-07-15 16:45:49 knnindia.co.in Credit Gap In MSME Sector Pegged At USD 530 Bn: Report