MSME Update: Technological disruptions driving formalization of SME sector

Policy reforms along with digitization of governance processes are driving the formerly unorganised SMEs to become part of India's growing formalised and transparent SME ecosystem. This in turn is attracting lenders to more actively engage with this sector.

In a event held to celebrate the success of Indian MSMEs, experts debated on the challenges faced by the sector in getting access to credit at different stages of their growth cycle. The event was jointly organised by BSE Limited and Edelweiss SME Lending. Ashishkumar Chauhan, MD & CEO of BSE; Rashesh Shah, Chairman & CEO, Edelweiss Group; Union Minister of Commerce, Suresh Prabhu and Sudhir Mungantiwar, Minister of Finance & Planning, Government of Maharashtra participated in the event.

Speaking on the occasion, Ashishkumar Chauhan said that the SME sector has emerged as a highly vibrant and dynamic sector of the Indian economy, over the past few years. The BSE SME platform enables SME’s to list and grow. As on today, more than 250 SMEs are listed on the platform. It has fast emerged as the preferred platform for SMEs to raise capital and engage investors. The platform provides immense opportunity to entrepreneurs to raise equity capital for growth and expansion, and for investors to identify and invest in SMEs at an early stage.

Greater compliance ushered by GST implementation and digitization of the Indian economy has given better visibility to the business models of SMEs. Immense growth potential and willingness of new age lenders including NBFCs, fintech to provider swift and customized solutions is improving the access to credit for this sector.