AN ANALYSIS OF CREDIT FLOW TO MSMES IN INDIA USING SECONDARY DATA
Keywords:
MSMEs, Financial Inclusion, Credit access, Credit Guarantee scheme,,Abstract
This study attempts to evaluate the trends, patterns, and difficulties in the credit flow to Micro,
Small, and Medium Enterprises (MSMEs) in India with the help of secondary sources of data
such as the Reserve Bank of India (RBI) and the Small Industries Development Bank of India
(SIDBI). MSMEs are vital to the Indian economy, contributing significantly to GDP, exports,
and employment. But, limited access to formal credit has historically constrained their growth.
This paper evaluates credit disbursement trends over the last decade, examines policy
interventions, and finds gaps in credit access. It concludes with policy recommendations to
enhance financial inclusion and ease of credit for MSMEs.
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