SME lending hugely underserved market as conventional banking unable to handle business volume from the sector

Micro, small and medium enterprises (MSME) play a key role in India’s industrial production and the sector contributes nearly 30% to the country’s gross domestic product (GDP). They account for around 40% of India’s exports and employ 11.10 crore people, according to the 2022-23 annual report of the MSME ministry. The sector’s contribution to the service sector is not fully accounted for yet. Though the sector is contributing substantially to the country’s manufacturing output, it is the most scattered and unorganized among all industries. This heterogeneous character stands as a major hurdle in its path to expansion, modernisation and technological advancements.  

https://www.financialexpress.com/business/sme/cafe-sme/sme-lending-hugely-underserved-market-as-conventional-banking-unable-to-handle-business-volume-from-the-sector/3290166/
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