For the growth of the manufacturing sector in the country and specifically in the eastern region, there is a need to focus on the MSME sector. This sector has shown impressive potential but faces a number of challenges to its growth mainly due to the high cost of credit which does not reach them on time. There is inadequate capital infusion compounded by insufficient data on credit requirement.
This study attempts to document the various schemes and new financing methods supported by government bodies, banks and financial institutions, available for MSMEs and provides them with a roadmap for optimal use. It also highlights alternative financing options like venture capital, factoring and supply chain financing as a route to access capital from bank and non-bank sources. The innovative platform provided by the recently introduced SME Exchange promises to give the SMEs a much needed access to low cost equity capital has also been analysed.
The report focuses on financing solutions for MSMEs in east India and provides a roadmap for MSMEs to overcome liquidity issues.