MSME Financing Market in India 2023
MSME Financing Market in India 2023
Abstract
Micro, Small, and Medium Enterprises (MSME) play a pivotal role in the Indian economy. The small and medium-sized manufacturing enterprises are mainly concentrated in the rural regions of the country, whereas the trading and other operational enterprises are mainly based in the urban areas. The government has introduced several policies which extend loan facilities to MSMEs to address the problem of unavailability of enough credit.
Market Insights:
As of FY 2022, the MSME industry offered employment to more than 111 million people and is the second-largest employment-generating sector in India (agriculture is the largest). In India, around 33 million MSMEs are in rural regions and 31 million are in urban areas. The sector contributes ~29% to the country's GDP, which is expected to reach 50% by 2025.
Credit Supply to the MSME Sector in India:
Traditionally, public sector banks led credit disbursement to MSMEs, with a 50% share before 2019. However, since then, they have ceded shares to private banks. As of August 2022, the MSME sector faced a credit gap of INR 20-25 Tn against an outstanding amount of INR 22.3 Tn.
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.
Content
Table of Contents
Chapter 1: Executive Summary
Chapter 2: Socio-economic Indicators
Chapter 3: Introduction
3.1. Market definition and structure
Chapter 4: MSME Sector in India
4.1. India MSME sector – Overview
4.2. Number of MSMEs in India – rural vs urban split (FY 2022)
4.3. Number of MSMEs in India – split based on types of enterprises (FY 2022)
4.4. Number of MSMEs in India – activity-wise split (FY 2022)
4.5. Estimated employment in India MSME sector – enterprise-wise
4.6. Estimated employment in India MSME sector – activity-wise
4.7. Top 10 states with maximum MSMEs in India
4.8. State-wise distribution of MSMEs
Chapter 5: Credit Supply to the MSME Sector in India
5.1. Share of loan disbursements to MSMEs (FY 2021 and FY 2022)
5.2. Loan disbursements to MSMEs in India quarter-wise (FY 2021 – FY 2022)
5.3. Loan disbursements to micro enterprises in India quarter-wise (FY 2021 – FY 2022)
5.4. Loan disbursements to small enterprises in India quarter-wise (FY 2021 – FY 2022)
5.5. Loan disbursements to medium enterprises in India quarter-wise (FY 2021 – FY 2022)
Chapter 6: Potential Interventions in the MSME Credit Ecosystem
6.1. Potential Interventions in the MSME credit ecosystem
Chapter 7: COVID-19 Impact Analysis
7.1. COVID-19 impact analysis
Chapter 8: Market Influencers
8.1. Market drivers
8.2. Market challengers
Chapter 9: Government Initiatives
9.1. Government initiatives
Chapter 10: Market Trends
10.1. Market trends
Chapter 11: Competitive Landscape
11.1. Axis Bank Limited
–Company information
–Business description
–Products/Services
–Key people
–Financial snapshot
–Key ratios
–Key financial performance indicators
–Key business segments
–Key geographical segments
Note: Similar information covered for all other companies
11.2. Bajaj Finserv Limited
11.3. Bandhan Bank Limited
11.4. Central Bank of India
11.5. Federal Bank Limited
11.6. HDFC Bank Limited
11.7. ICICI Limited
11.8. Kotak Mahindra Bank Limited
11.9. State Bank of India
11.10. Union Bank of India
Chapter 12: Recent Developments
12.1. Recent developments
Chapter 13: Appendix
13.1. Research methodology
13.2. About Netscribes
13.3. Disclaimer
Market Insights:
As of FY 2022, the MSME industry offered employment to more than 111 million people and is the second-largest employment-generating sector in India (agriculture is the largest). In India, around 33 million MSMEs are in rural regions and 31 million are in urban areas. The sector contributes ~29% to the country's GDP, which is expected to reach 50% by 2025.
Credit Supply to the MSME Sector in India:
Traditionally, public sector banks led credit disbursement to MSMEs, with a 50% share before 2019. However, since then, they have ceded shares to private banks. As of August 2022, the MSME sector faced a credit gap of INR 20-25 Tn against an outstanding amount of INR 22.3 Tn.
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.
Chapter 1: Executive Summary
Chapter 2: Socio-economic Indicators
Chapter 3: Introduction
3.1. Market definition and structure
Chapter 4: MSME Sector in India
4.1. India MSME sector – Overview
4.2. Number of MSMEs in India – rural vs urban split (FY 2022)
4.3. Number of MSMEs in India – split based on types of enterprises (FY 2022)
4.4. Number of MSMEs in India – activity-wise split (FY 2022)
4.5. Estimated employment in India MSME sector – enterprise-wise
4.6. Estimated employment in India MSME sector – activity-wise
4.7. Top 10 states with maximum MSMEs in India
4.8. State-wise distribution of MSMEs
Chapter 5: Credit Supply to the MSME Sector in India
5.1. Share of loan disbursements to MSMEs (FY 2021 and FY 2022)
5.2. Loan disbursements to MSMEs in India quarter-wise (FY 2021 – FY 2022)
5.3. Loan disbursements to micro enterprises in India quarter-wise (FY 2021 – FY 2022)
5.4. Loan disbursements to small enterprises in India quarter-wise (FY 2021 – FY 2022)
5.5. Loan disbursements to medium enterprises in India quarter-wise (FY 2021 – FY 2022)
Chapter 6: Potential Interventions in the MSME Credit Ecosystem
6.1. Potential Interventions in the MSME credit ecosystem
Chapter 7: COVID-19 Impact Analysis
7.1. COVID-19 impact analysis
Chapter 8: Market Influencers
8.1. Market drivers
8.2. Market challengers
Chapter 9: Government Initiatives
9.1. Government initiatives
Chapter 10: Market Trends
10.1. Market trends
Chapter 11: Competitive Landscape
11.1. Axis Bank Limited
–Company information
–Business description
–Products/Services
–Key people
–Financial snapshot
–Key ratios
–Key financial performance indicators
–Key business segments
–Key geographical segments
Note: Similar information covered for all other companies
11.2. Bajaj Finserv Limited
11.3. Bandhan Bank Limited
11.4. Central Bank of India
11.5. Federal Bank Limited
11.6. HDFC Bank Limited
11.7. ICICI Limited
11.8. Kotak Mahindra Bank Limited
11.9. State Bank of India
11.10. Union Bank of India
Chapter 12: Recent Developments
12.1. Recent developments
Chapter 13: Appendix
13.1. Research methodology
13.2. About Netscribes
13.3. Disclaimer
