STRUCTURAL REFORMS IN MSME FUNDING IS IMPERATIVE

Structural Reforms in MSME Funding’ brings together key stakeholders including lenders, MSMEs borrowers and technology players. The Summit aims to deliberate new opportunities, approaches and innovations to increase the required low-cost credit flow that would support the government‘s target of making India a US$5 trillion economy.

Achieving this economic vision requires focus on innovations and governance structures in the financial services. With financial services contributing 7% to the Indian GDP, a strengthened banking sector has the potential to contribute directly and indirectly to GDP, increase job creation and enhance median income.

 NBFCs and FinTech have witnessed significant developments in the past few years, impacting varied industries and the common people in multiple ways. Another sector that will play a key role in achieving the target of US$5 trillion economy is the MSME sector. MSMEs can help reduce regional imbalances in India, by providing large employment opportunities at comparatively lower capital cost and support industrialization of rural and backward areas. MSMEs are complementary to large industries as ancillary units, and this sector contributes enormously to the socio-economic development of the country. Hence, there is a need to ensure seamless funding for the MSME sector.

There is a need to create an enabling environment and supporting infrastructure for improving access to financing and credit cycles. All components of the financial ecosystem such as the MSMEs, Banks, NBFCs, MUDRA Bank, Credit Rating Agencies, FinTech companies, etc. should work in tandem to ensure seamless funding across sectors.

 In this context, the ASSOCHAM is organizing the fifteenth edition of the Annual Banking Summit with the theme ‘Structural Reforms in MSME Funding’, to deliberate a roadmap to improve the funding environment in India. We hope that regulators, market participants, and government departments will find it useful.