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MSME Financing Market in India 2021

  • Report Code : 735636
  • Industry : Services
  • Published On : Nov 2021
  • Pages : 91
  • Publisher : Netscribes
  • Format: WMR PPT FormatWMR PDF Format

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.

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. MSME sector - Overview
4.2. Number of MSMEs in India
- Rural vs urban split
- Split based on types of enterprises
- Split based on types of enterprises (urban vs rural)
- Activity-wise split
- Industry-wise distribution
- Split based on status of registration
- State-wise distribution of MSMEs
4.3. Estimated employment in the MSME sector - Activity-wise

Chapter 5: Debt demand of the MSME sector
5.1. Total debt demand of the MSME sector
5.2. Addressable debt and non-addressable debt demand
5.3. Addressable debt demand by medium, small, and micro enterprises
5.4. Addressable debt demand as a percentage of number of enterprises
5.5. Addressable debt demand (based on geography)

Chapter 6: Credit supply to the MSME sector in India
6.1. Supply of credit to the MSME sector
6.2. Share of formal debt lenders across MSME segments
6.3. Informal debt supply to the MSME sector
6.4. Debt supply based on geography

Chapter 7: Credit gap in the MSME sector in India
7.1. Overall credit gap

Chapter 8: Potential interventions in the MSME credit ecosystem
8.1. Potential Interventions in the MSME credit ecosystem

Chapter 9: Impact of COVID-19
9.1. COVID-19 impact analysis

Chapter 10: Market influencers
10.1. Market drivers
10.2. Market challengers

Chapter 11: Government initiatives
Chapter 12: Market trends
Chapter 13: Competitive landscape
13.1. 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

13.2. Bajaj Finserv Limited
13.3. Central Bank of India
13.4. Federal Bank Limited
13.5. HDFC Bank Limited
13.6. ICICI Limited
13.7. Kotak Mahindra Bank Limited
13.8. State Bank of India
13.9. Union Bank of India
13.10. Utkarsh Small Finance Bank

Chapter 14: Recent developments
Chapter 15: Appendix

15.1. Research methodology
15.2. About Netscribes
15.3. Disclaimer

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