FUNDING FOR MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA

Author Name: 1. Dr. Nalla Bala Kalyan 2. Mr. S. Partha Sarathi

Volume/Issue: 02/09

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://www.doi-ds.org/doilink/03.2022-61476241/UIJIR

Affiliation:

1. Associate Professor, Sri Venkateswara College of Engineering Karakambadi Road, Tirupathi, Chittoor District, Andhra Pradesh, India
2. Assistant Professor, Department of Business Administration, Annamacharya PG College of Computer Studies Rajampet, Andhra Pradesh, India

ABSTRACT

Micro, Small and Medium Enterprises (MSMEs) represent a significant part of the Indian economy and are one of the strongest drivers of economic development, innovation and employment. Access to finance is frequently identified as a critical barrier to growth for MSMEs. Creating opportunities for MSMEs in emerging markets is a key way to advance economic development and reduce poverty. With a sustained growth rate of over 10 percent in the past few years, the MSME sector has come to represent the ability of the Indian entrepreneur to innovate and create solutions despite the challenges. As the nation's largest employer, generating more than 111 million jobs through 63.38 million enterprises1 and contributing over 28% of the nation's GDP and more than 40% of the country's overall exports, the relevance and role of the MSME sector as the central driving force behind India's assertive vision to be a dominant global economic power cannot be overemphasized. This paper focuses on the financial support provided for MSMEs. The Microfinance Sector occupies a position of importance in the Indian Economy. It further examines the details of Bank Loan disbursement to and outstanding against MFIs.

Key words: Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE), Growth, Gross Domestic Product (GDP), India, (MSME) Micro, Small and Medium Enterprises