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Findings of SIDBI Report on Indian MSME Sector:
- Key Challenges: Lack of access to timely and adequate credit and shortage of skilled manpower remain major issues for MSMEs.
- Credit Access Issues:
- Despite policy measures, many MSMEs struggle to access sufficient credit when needed.
- Informal borrowings account for 3% of small industries’ loans, 2% for MSMEs, and 12% for micro enterprises.
- The sector has an estimated credit gap of about 24% or ₹30 lakh crore.
- The gap is higher in the services sector at 27% and among women-owned MSMEs at 35%, indicating the need for focused policy actions.
- Digital Adoption:
- 18% of MSMEs use digital lending platforms.
- 90% of MSMEs accept digital payments.
- The number is expected to rise with support from platforms like UPI.
- Manpower Shortage:
- Around 25% of MSMEs cited lack of skilled manpower as a key challenge.
- The issue is particularly severe in sectors such as defence equipment, readymade garments, hotels, and tiles and sanitaryware.
Why in News?
- A SIDBI report, which is based on a survey of 2,000 MSMEs in 19 sectors, says that despite comprehensive policy initiatives, MSMEs do not have access to adequate credit when they need it.
