Journal Press India^®

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The MSME sector, an engine for Indian economic development, contributes 28.77 per cent in GDP, accounts for 45 per cent of the manufacturing output, and 40 per cent of the total exports of Indian economy. This sector is estimated to employ about 59 million persons in over 26 million units through the country. The potential demand for MSME finance is estimated at $8.9 trillion, compared to the credit supply of $3.7 trillion. Globally 65 million formal MSMEs are credit constrained representing 40 per cent of MSMEs in 128 reviewed countries. There are many lenders working to feed financial and capital requirement for SMEs like SFCs, MSME, PMMY, SIDBI, SMILE for MSMEs, Venture Capital Funds, IDBI, all commercial banks and NBFCs, etc. Among the all, State Finance Corporations (SFCs) are the major players, funding to SMEs and providing capital to SMEs. The State Finance Corporation (SFC) Act, 1951, was enacted with the object of providing medium and long-term financial assistance to SMEs, ensure economic growth with accent on balanced regional growth and widening of the entrepreneurial base through encouragement of new entrepreneurs in the country.

Keywords

PMMY; Economic development; SMEs; SMILE; Venture capital

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