Signs bright for MSME sector as lending and financial stability improve

Issues like corporate governance, expertise in international trade and digital transformation fester

The TransUnion CIBIL and SIDBI MSME Pulse report for May has it that in FY25 credit to the sector stood at ₹35.2 trillion, up 13 per cent year-on-year. The quality of the book also improved: overall balance-level delinquencies (measured as 90-720 days-past-due, a reference to cases where the account is not current and classified as sub-standard) was at its lowest level in the last five years at 1.79 per cent, an improvement of 35 basis points. This last aspect must be read along with the support extended under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to