MSME - #SectorUpdates

Accelerating the flow of credit to small enterprises is essential for India to achieve its $5 trillion economy dream by 2025 as the MSME sector has been a major driver in the country’s rise as the world’s fifth largest economy, said industry body KPMG in its latest November 2022 report on non-banking financial companies (NBFCs) and housing finance companies (HFCs). The report ‘Role of NBFCs and HFCs in driving sustainable GDP growth in India’ noted that although the economic losses to the MSME sector from the Covid pandemic were huge, it has been recovering well on the back of strong policy initiatives from the government. Moreover, even as the current global slowdown and rising interest rates have raised concerns for the near-term outlook, the sector is on the cusp of major transformation on the back of deeper digitalization initiatives, a wider pool of young entrepreneurs and closer collaboration between the private and public sectors. 

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