MSME - #SectorUpdates
Micro, Small, and Medium Enterprises (MSMEs) are known as the backbone of the Indian economy. Considering the significance of MSMEs in economic growth, it is crucial to assist them by removing their working capital-related barriers to growth and SCF (supply chain finance) can be a key enabler in this regard. This is all the more important for MSMEs, as credit risk assessment is complex for institutional lenders, due to a lack of structured financial information like historical cash flow position, repayment trends data, etc. As MSMEs gradually re-establish contemporary ways towards meeting their supply chain goals, digitization of the supply chain has become an imperative. However, in India currently only around 5 per cent of supply chain is digitized. Small scale of operations, lack of adoption of proper technology, lack of trained human resources etc have thwarted the digitization drive for many MSMEs. Experts feel, logistics friendly country mapping will help to foster supply chain digitization.