DFS Secretary held Meeting with Senior Leaders of PSU Banks, SIDBI, IBA, MSME

The Secretary of the Department of Financial Services (DFS) today chaired a meeting on “Empowering MSMEs: Opportunities, Challenges and Way Forward”, organised by the Indian Banks’ Association (IBA) in Mumbai. The event was attended by senior leadership of SIDBI, Public and Private Sector Banks, IBA officials, and MSME industry associations from across the country.

In his keynote address, the Secretary highlighted that MSMEs are the backbone of both the Indian and global economy, contributing nearly 30% to India’s GDP and more than 45% to exports. He said the sector plays a vital role in grassroots economic transformation by fostering entrepreneurship, employment, and inclusive growth. Pointing out India’s diverse MSME landscape, ranging from traditional industries to modern tech, he stressed its importance in achieving the vision of Viksit Bharat 2047. He added that empowering MSMEs with access to finance, technology, and markets will be key to building a self-reliant and globally competitive India.

He further emphasized that collaboration between industry, government, and financial institutions can unlock new opportunities for the MSME sector, and that collective insights and experiences will help shape more responsive policies and effective support systems.

The meeting also included a presentation on Government of India’s initiatives for MSMEs. Deliberations focused on moving fully towards digital loans, strengthening cash-flow-based underwriting models, addressing delayed payments, improving MSME awareness, enhancing data quality, and expanding access to finance.

The discussions concluded with a focus on setting medium- and long-term priorities for creating stronger policies and impactful support systems to drive the growth of the MSME sector.