Credit access for MSMEs depends on digitisation, integration of services

The backbone of a unified digital ecosystem will be TReDS, which helps MSMEs to convert receivables into instant liquidity

India’s aspiration to become atmanirbhar (self-reliant) relies on the success of its micro, small, and medium enterprises (MSMEs), which make up 90 per cent of businesses, some 30 per cent of the gross domestic product, and employ more than 120 million people. However, these firms face longstanding challenges in accessing working capital, hindering their operational continuity and growth. Reports indicate a staggering credit gap of Rs 25 trillion, with only 14 per cent of the 64 million MSMEs having access to credit.

Trade Receivables Discounting Systems (TReDS) – a digital bill-discounting platform – helps MSMEs convert their receivables into instant