Micro, Small and Medium Enterprises (MSMEs) form the backbone of the Indian economy as the second largest employer. Roughly, there are 65 million MSMEs in the country across service and manufacturing sectors. The sector is vast and diversified, with 90 per cent of them being micro enterprises. Together, they account for approximately 25 per cent of the working population.

This report, result of research done by a team of professionals working in the domain of MSME financing, unlocks a better understanding of the sector and explores the room for improvement in the present toolds in MSME lending, especially to the rural and semi-urban micro enterprises. The report provides a framework which would enable better and easier financial access to MSMEs, making them more resilient.