The Department of Financial Services Drives Stakeholder Dialogue to Empower MSMEs with Digital Finance Focus
SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Finance (Department of Financial Services)
The Department of Financial Services convened a summit in Mumbai, chaired by its Secretary and organised in partnership with the Indian Banksβ Association, bringing together Small Industries Development Bank of India (SIDBI), public and private banks, and MSME industry bodies. The opening address underscored that MSMEs contribute about 30% of Indiaβs GDP and over 45% of exports. The meeting featured a presentation on government initiatives and deep deliberations on key challenges: transitioning to digital lending, adopting cash-flow based underwriting, addressing delayed payments, improving data quality, and increasing awareness among MSMEs. Discussions also set medium- and long-term priorities for responsive policies and support systems to strengthen MSME resilience.
This meeting signals a shift toward collaborative policy-making in MSME finance, emphasizing digital transformation, credit innovation, and institutional coordination. By engaging both the banking sector and MSME associations, it lays groundwork for upgrading financial infrastructure and reducing systemic frictions in access to capital.
Relevant Question for Policy Stakeholders: What institutional architecture (e.g. MSME credit data platforms, fintech partnerships, regulatory sandboxes) must India build to ensure that digital lending, cash-flow underwriting, and timely payments become scalable and inclusive across the full range of MSMEs?
Follow the full news here: PIB Release β Empowering MSMEs: Meeting chaired by DFS