MSME Financing Market in India 2021

  • Product Code:
    RP-ID-10351998
  • Published Date:
    12 Nov 2021
  • Region:
    Global
  • Pages:
    91
  • Category:
    Service Industry
  • Publisher:
    Pub-ID-13

Impact Analysis on the Growth of Market

Activating Probable Propositions Amidst COVID-19 Crisis

With things going haywire, we analyze key points to make sure that the businesses around the globe are completely prepared to tackle potential implications caused by COVID-19. Be it protecting employees, customers or the overall business operations, we ensure that the employers take the right decisions, make strategic investments and maintain a healthy work culture along with taking probable measures to minimize the financial loss. Know More

The Research Report is Updated with 2020 Base Year, 2021 Estimated year and Forecast till 2030 with Market Insights.


With the dip in global production, the GDP has contracted in 2020 and impacted the market across the world. Upon placing a Sample Request, you will receive an updated report with 2020 as base year, 2021 as estimated year and forecast to 2030. This will have market drivers, recovery rate in the market, insights and competitive analysis.



Market Overview:

The Micro, Small, and Medium Enterprise (MSME) play a pivotal role in the Indian economy. In FY 2021, the MSME industry offered employment to more than 111 million people and was the second-largest employment-generating sector in India (agriculture is the largest).
The sector contributes ~29% to the country's GDP, which is expected to reach 50% by 2025. The industry's financing needs depend upon the nature, size, customer segments, and stage of development. Financial institutions have limited their lending exposure to the Indian MSME industry due to the high cost of services, the small ticket size of loans, and the limited ability of MSMEs to offer immovable collaterals.
In 2020, the overall credit gap in the MSME industry stood at ~INR 14.53 Trn.
Debt Demand of the MSME Sector in India:
The overall debt demand by MSMEs amounted to ~ INR 105.50 Trn in 2020. In 2020, the estimated addressable debt demand was INR 44.66 Trn. Approximately 47% of the debt demand is non-addressable because of the presence of sick enterprises, MSMEs with limited operational capacities, and enterprises which voluntarily exclude themselves from formal financial services, as well as other factors.
Credit Supply to the MSME Sector in India:
In 2020, the overall credit supply, including both the formal and informal sectors, amounted to INR 110.40 Trn. The formal and the informal sectors contribute ~22.72% and ~77.28% to the overall credit supply, respectively.
Impact of COVID-19:
Small businesses are the most vulnerable to unexpected crises like COVID-19 because of their size, scale of business operations, and limited financial management resources. However, the government has announced several policy measures to minimize losses.
The announcement of a targeted long-term repo operation (TLTRO) of INR 500 Bn, a grant of INR 3 Tn collateral-free automatic loans, INR 200 Bn subordinated debt to stressed MSMEs, and a complete ban on global tenders for procurement of goods and services for up to INR 2 Bn are a few of the crucial policy mandates.


Geography Analysis:


The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

  • North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
  • Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
  • Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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• Axis Bank Limited
• Bajaj Finserv Limited
• Central Bank of India
• Federal Bank Limited
• HDFC Bank Limited
• ICICI Limited
• Kotak Mahindra Bank Limited
• State Bank of India
• Union Bank of India
• Utkarsh Small Finance Bank

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