MSMEs' Role in the Development and Growth of the Local Economy in India
The Indian MSME sector is considered as the backbone of the economy. The growth and expansion of the sector will be a major contributor to make India into a $5 trillion economy in the next 5 years. According to recent statistics generated on the value addition MSMEs make to the Indian economy, around 67% is contributed by manufacturing units, followed by 33% by service. Over the years this sector has increased the optimum utilisation of domestic resources and produces quality products for both domestic and foreign consumption. 90% of the industrial units across the country are from the MSME sector and around 50% of them operate in Tier II and Tier III cities, creating employment opportunities and raising the standard of living for entrepreneurs and employees in semi-urban and rural areas.Learn more about Kinara Capital - https://www.kinaracapital.com/
MSME's Contribution to the Indian Economy
The MSME sector plays a crucial role in the economic and social development of India. Since independence, the sector has been growing progressively year on year, registering a current growth rate of over 18% in FY21. They help increase the industrial output, contribute to employment generation, boost rural and semi-urban economies and drive innovation in small-scale industries. Small businesses also have been contributing to the narrowing of regional imbalances, creating a more equitable distribution of wealth and income, as well as many activities to promote ancillary units and subunits, creating significant impact on socioeconomic development of the country.
The Indian MSME sector created over 111 million jobs, which is roughly around 45% of the total employment opportunities created in the country. The micro segment further contributes to 97% of the total employment in the MSME sector. Around 120+ million people earn their livelihoods through MSMEs in India. There are an estimated number of over 633 lakhs MSMEs in the country, around 324 lakhs of which are based in rural areas and the remaining 309 lakhs are in urban areas. The sector has contributed significantly to the socio-economic growth of the nation and complements major industries as well. As India moves towards becoming a $5 trillion economy, the Ministry of Micro Small and Medium Enterprises has projected that the sector will contribute 50% of the GDP by the year 2025.
How will MSMEs make India into a $5 Trillion Economy?
MSMEs will play a pivotal role in making India a $5 trillion economy over the next 5 years. With the help of last-mile lending companies such as NBFCs and government initiatives and schemes, small business entrepreneurs will be able to implement innovative tech solutions, digitalise their operations, adopt efficient production techniques and improve their product and delivery output. MSMEs in Tier II and Tier III cities will play a major part in reaching this milestone. Currently, the MSME sector employs 45% in the rural sector and is helping upgrade lifestyles of individuals and families in these places. Around 90% of the small businesses in Tier II and Tier III cities have adopted smart technology to grow their enterprises at a fast pace. The rate of adoption of digital and smart technology, payment options and online marketplaces in Tier II and Tier III cities has increased drastically over the past couple of years.
Check your loan eligibility in 1 minute - https://app.kinaracapital.com/blog
The Government of India has launched several schemes and initiatives to help small business entrepreneurs achieve their goals and move towards sustainable development. The technology and quality upgradation support for MSMEs is one of the ten initiatives outlined by the National Manufacturing Competitiveness Programme (NMCP). It aims to enhance the competitiveness of the MSMEs sector in India by improving energy efficiency and quality of the products. The Make in India and Atmanirbhar Bharat campaigns will further boost the growth and profitability of the Indian MSME sector. For India to become a $5 trillion economy, the growth of the MSME sector is imperative. Efficient production cycles, quality output, employment generation and increase in national exports are factors that will enable MSMEs to help India achieve the targeted growth rate.
Role of the Last-Mile Lending Companies
The credit gap for small business owners in India is estimated at $267 to $344 billion. Raising debt capital from traditional financial institutions is usually a long-drawn-out process and includes too many procedures. Furthermore, collateral or security is another challenge that small businesses face while raising credit from traditional sources. The advent of last-mile lending companies or NBFCs has been a game changer in the digital lending space. Digital lending in India is a segment that is growing exponentially with every passing year. The market by 2023 is further expected to reach a value of around $350 billion. The growth of NBFCs is directly proportional to the growth of small businesses, with the increase in their value NBFCs will be more efficient in providing funding at more flexible terms and conditions, boosting the growth of the small businesses in India.
Kinara Capital is a fast-growing Fintech NBFC in India, a Systemically Important RBI registered company, providing collateral-free business loans to MSMEs. The company uses proprietary AI/ML tech solutions for risk assessment, removing all biases from the lending process. Kinara Capital's digital first loan app - myKinara enables 1-minute eligibility checks without any uploads.
Kinara Capital is creating financial inclusion by bridging the lending gap in India and has disbursed over INR 3000 crores across 70,000+ loans to over 45,000 customers in 90+ urban, peri-urban and rural locations in India, leading to an incremental income generation of INR 700 crores for the small business entrepreneurs.
Get Collateral-free MSME Loans - https://www.kinaracapital.com/regional-loan/msme-loans/
About Kinara Capital
Kinara Capital is a fast-growing fintech propelling financial inclusion of small business owners in India. Led by a women-majority management team, Kinara Capital is globally recognized for its innovations in MSME financial inclusion. Headquartered in Bengaluru, Kinara Capital operates 125 branches across 90+ cities in India. Visit us at www.kinaracapital.com for more information and follow us on Twitter @KinaraCapital
50, Second Floor, 100 Feet Road, HAL II Stage, Indiranagar, Bengaluru, Karnataka 560038
Contact Name: Sayantoni Das for Kinara Capital
Reach us at: pr@kinaracapital.com
Call us at: 9989334826
This release was published on openPR.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release MSMEs' Role in the Development and Growth of the Local Economy in India here
News-ID: 2705314 • Views: …
More Releases from Kinara Capital
How to Get Instant Business Loans?
Instant Business Loans or Quick Business Loan is a credit facility that provides Micro, Small, and Medium Enterprises (MSMEs) with fast and easy access to capital. MSMEs often encounter the need for extra funding to address their myriad needs, and in such scenarios, business owners often tend to approach family or friends and secure funds informally. Others go to banks but traditional business loans usually take a lot of time…
5 Key Trends and Developments that MSMEs Cannot Ignore in 2023
Another year has ended, giving way to the fresh dawn of a new year. It is the time to refresh and recharge the energies to create a fruitful business year. Much like last year, 2023 is also anticipated to witness several major growth trends in the micro, small and medium enterprises (MSMEs) sector. These are critical to the shaping of further the growth strategy for the MSME sector in India,…
Business Loan - What is a Business Loan?
Business Loans are funds available to all types of businesses from banks, non-banking financial companies (NBFCs), or other financial institutions. Business Loans can be tailor-made to meet the specific needs of growing small and large businesses. These loans offer your business the opportunity to scale up and give it the cutting-edge necessary for success in today's competitive world.
Business Loans for the micro-small-medium enterprise (MSME) sector in India are particularly…
Open Network for Digital Commerce is Poised to Accelerate the Growth of MSMEs in …
India has one of the fastest-growing digital commerce spaces in the world, expected to reach a market size of close to $150 billion by 2025. This huge surge has been fuelled in part by the tech transformation which has been unfolding across the country for the past decade or so. The government has also added its support and impetus to the tech infrastructure in order to boost efficiency and ease…
More Releases for India
Ayurvedic Service Market is Flourishing Like Never Before | Patanjali Ayurved Li …
RnM newly added a research report on the Ayurvedic Service market, which represents a study for the period from 2020 to 2026.
The research study provides a near look at the market scenario and dynamics impacting its growth. This report highlights the crucial developments along with other events happening in the market which are marking on the growth and opening doors for future growth in the coming years. Additionally, the…
Pasta Market Report 2019 Companies included Bambino (India), Nestle (USA), Field …
We have recently published this report and it is available for immediate purchase. For inquiry Email us on: jasonsmith@marketreportscompany.com
This market study includes data about consumer perspective, comprehensive analysis, statistics, market share, company performances (Stocks), historical analysis 2012 to 2017, market forecast 2019 to 2025 in terms of volume, revenue, YOY growth rate, and CAGR for the year 2019 to 2025, etc. The report also provides detailed segmentation on the…
Pasta Market Report 2018 Companies included Bambino (India), Nestle (USA), Field …
We have recently published this report and it is available for immediate purchase. For inquiry Email us on: jasonsmith@marketreportscompany.com *********
This market study includes data about consumer perspective, comprehensive analysis, statistics, market share, company performances (Stocks), historical analysis 2012 to 2017, market forecast 2018 to 2025 in terms of volume, revenue, YOY growth rate, and CAGR for the year 2018 to 2025, etc. The report also provides…
Interior Designers India, Designers and Architects India, Interior Design Consul …
Synergy Corporate Interiors Pvt. Ltd. are offer Designers and Architects India Our architects, designers are working an national and international client base. The final design output is then integrated with the various technical and engineering aspects and taken into production. The expression is also individualistic, based on the communication of the correct corporate identity. Our designers, engineers and architects perform any plan successfully combine handy knowledge with creative ideas into…
Domain Registration India, Web Hosting India, VPS Hosting India , SSL Certificat …
All the Domain Registration services are at affordable price and assure you for the 100% quality.
India Internet offers cheap domain name registration for many domain extensions available. We are a full-service web site solutions provider. We offer a full range of web services including domain registration India, Web Hosting India, Web design, SEO marketing and etc.
We offer different standard and different Windows .NET low-cost, full-featured, all-inclusive web hosting and domain…
Domain Registration India, Web Hosting India, Payment Gateway India
Indiainternet.in is a Quality Web Hosting Company India, provide all web related support and Web hosting services like linux web hosting, windows web hosting, web hosting packages, domain registration in india, Corporate email solution, business email hosting, payment gateway integration, SSL with supports like free php, cgi, asp, free msaccess, free cdonts, free webmail, web based control panel, unlimited ftp access, unlimited data transfer.
During the domain registration process, you will…