Small And Medium Enterprises (SMEs) wield enormous power in India’s economic empowerment. Contributing significantly to the nation’s GDP, export and industrial production, SMEs in India have already created employment opportunities for 106 million people. However, lack of a robust financial infrastructure severely impacts the growth of the SME segment.
A 2014 FirstBiz-Greyhound Knowledge Group SME survey reveals that access to credit has conventionally been one of the biggest challenges for 92% of SMEs in India. Despite banks adopting a more liberal outlook in lending to SMEs, there is still a significant financial gap of INR 20.9 trillion ($418 billion, according to MSME census and RBI data, 2013-2014).
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