6 ways India's MSME sector can be made stronger
The Micro, Small, and Medium Enterprises (MSME) sector in India is second only to China, according to MSME ministry data. There are about 6.3 crore enterprises in India. MSMEs play a key role in developing the Indian economy, contributing more than 29 percent to GDP from their domestic and international trade. Their numbers in India increased by a Compound Annual Growth Rate (CAGR) of 19 percent from 2019 to 2020.
In FY21, loan distribution to MSMEs increased by 40 percent to Rs 9,50,000 crore from Rs 6,80,000 crore. The highest number of loans were sanctioned in FY20. 6.22 crore loans amounting to Rs 3,37,495.53 crore were sanctioned, of which Rs 3,29,715.03 crore were disbursed during the year.