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Resource centre on India's rural distress
 
 

Financial inclusion of MSMEs and its impact on society -Hardika Shah

-The Hindu Business Line

Why access to capital for MSME entrepreneurs has the potential to alter India’s social fabric

India’s social fabric has undergone a series of transformations since Independence. After the liberalisation of the economy in the 1990s, the market opened up and employment opportunities grew, as did the spending power and standard of living of the average Indian.

As financial access grew, so did social mobility. However, certain sections have lagged behind due to myriad reasons ranging from social barriers to a lack of access to education and financing.

One of these sections is made up of a multitude of micro, small and medium enterprises (MSMEs), which form the foundation of the economy.

Contribution to GDP

At present, the sector comprises over 63 million MSMEs and accounts for close to 30 per cent of the country’s GDP, 50 per cent of India’s exports, and employs over 120 million people. With this vast reach and potential, the sector undoubtedly has a very significant impact on the country’s social fabric. Let’s explore how Indian MSMEs shape the nation’s progress, and the hurdles that hinder them.

Please click here to read more.