An Analysis of Role of Bank in Growth of MSME Sectors
DOI:
https://doi.org/10.64882/ijrt.v14.iS1.1117Keywords:
MSMEs, Finance, Development, Growth and ChallengesAbstract
Micro, Small and Medium Enterprises (MSMEs) are widely recognized as the backbone of the Indian economy. They form a vital economic segment by significantly contributing to employment creation, industrial production, export performance, and the promotion of inclusive and sustainable economic growth. After the agriculture sector, MSMEs are the largest sectors which covered the maximum portion of Indian economy. These sectors generate huge employment and also develop entrepreneurship at lower cost. Therefore, the growth and sustainability of the MSME sector totally depend on the availability adequate financial supports timely and bank act as the primarily institution for the providing credit facility.
In the MSME sectors, Banks play an important role in enhancing the growth, long-term sustainability, and competitive strength by ensuring timely financial support, fostering innovation, and enabling access to diverse banking services. As per available records, bank support to MSMEs reached approximately ₹40.4 lakh crore by March 2025, representing about 17.7 percent of total bank lending, underscoring the growing importance of banks in financing and strengthening the MSME sector. This research paper enlightens an analytical study of the role played by banking industries in the growth and development of MSMEs sectors,
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