1. As on March 26, the outstanding bank loan to micro and small enterprises in the manufacturing sector is Rs 3.84 trillion.
2. For the medium enterprises, both in manufacturing and the service sector, it is Rs 1.36 trillion.
3. The banks have Rs 2.98 trillion exposure to retail trade.
4. Apart from these, within the so-called priority sector, the banking system has given Rs 11.07 trillion as loan to the micro and small enterprises and another Rs 2.06 trillion to medium enterprises.
5. The priority norms require banks to give 40 per cent of their loans to agriculture, small enterprises and many other pockets of the formal and informal economy.
6. These are provisional RBI data sourced from banks, which cover 90 per cent of loans in the system.
7. A large part of this is being affected by the second Covid wave.
How important are micro, small and medium enterprises (MSMEs) for Indian economy?
The 2020 annual report of the Ministry of Micro, Small and Medium Enterprises says
- there are 63.4 million MSME units, employing 111 million people.
- Going by a recent Confederation of Indian Industry report, MSMEs contribute around 6.11 per cent of the manufacturing GDP and 24.63 per cent of the GDP from service activities as well as 33.4 per cent of India’s manufacturing output.
- According to Directorate General of Commercial Intelligence and Statistics, the share of MSME-related products in total export from India during 2018-19 was 48.10 per cent.
- At a conference in April, MSME minister Nitin Gadkari said the overall contribution of the sector in the economy would be raised from 30 per cent to 40 per cent in the coming years, adding that work is in progress to increase exports from these units.