Page 27 - Banking Finance July 2021

COVER STORY

MSME LENDING:

PSBS LOCKING

HORN WITH

PRIVATE LENDERS

& NBFCS

M SME sector has been the As a single sector, it contributes for over 28% of GDP employing around 111 million

people, which is only second to the agriculture sector. The above factors speaks
driving force for the
the volume of contribution of MSME in the building of the nation but still as per
overall growth and
development of the
entire world and our country has not RBI data this sector has potential to grow at much faster rate and provide boost
to our manufacturing sector. The recent manufacturing policy envisages the
been an exception. With the advent of contribution of manufacturing sector growing from a level of 16% to 25% by the
digital drive as well as paradigm shift end of 2022.
in the industrial blueprint of our
economy, still MSME sector continues The contribution of MSME sector to the economy can be well enumerated from
to have a paramount importance in it. the below mentioned table:
The dependency of our economy on
Year MSME Growth Total Share of Total Share of
this single sector can be emphasized
from the fact that MSME sector has a GVA % GVA MSME GDP MSME
In Cr In Cr In % In Cr In GDP
vast as well as single largest network
of 63.38 million enterprises, which in 2011-12 2622574 8106946 32.35 8736329 30
turn contributes towards 45% of 2012-13 3020528 15.17 9202692 32.82 9944013 30.4
manufacturing output, and more than 2013-14 3389922 12.23 10363153 32.71 11233522 30.2
40% of exports.
2014-15 3704956 9.29 11504279 32.21 12467959 29.7
About the author 2015-16 4025595 8.65 12566646 32.03 13764037 29.2
2016-17 4405753 9.44 13841591 31.83 15253714 28.9
Ranjan Kumar Sahoo
Chief Manager and Faculty, Source: Annual report of MSME DEPT.
Union Bank of India
PSBs play a major role in driving the MSME sector by providing the need based

BANKING FINANCE | JULY | 2021 | 27