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Mudra Bank could help small business grow

Only 4% of 57.7 million small business units in India have access to institutional finance

Reuters  |  Mumbai 

A new bank announced in the annual Budget last week could boost loans and cut borrowing costs for cash-starved small businesses -- tailors, mechanics and phone booth operators who account for around a fifth of the economy. Mudra bank - to be set up with $3.2 billion of capital to help microfinancing firms to lend more - should help leverage up firms which account for 40% of India's exports, just as India tries to rekindle growth, lenders and entrepreneurs say. India's small businesses employ more than 106 million workers, according to government statistics, in a ...

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First Published: Thu, March 05 2015. 11:25 IST