Source | Linkedin | Nisha Ramchandani | Outreach at Axilor Ventures
In her maiden Budget in 2019, India’s Finance Minister Nirmala Sitharaman stated that India is gearing towards becoming a $5 trillion economy by 2024. Debates have further ensued about whether the target is achievable or not. However, one aspect has been clearly established. For India to gain double digit growth figures going forward, its micro, small and medium enterprises (MSMEs) will have a prominent role to play in employment generation, exports, skilling and making the sector more formalised. MSMEs contribute 33% to India’s GDP and employ 11.7 crore people (that is 40% of India’s workforce).
Large global economies thrive on their SME sector; some examples include the Mittelstand in Germany and Zhongxiao qi ye in China. A common thread that helps MSMEs world over succeed is the credit environment and working capital liquidity afforded to them. Globally, large economies have empowered SMEs with the ease-of-raising-capital, uncomplicated financing schemes and tech connectivity. It is India’s turn to now empower our engines of growth and provide them with the necessary tools for success. It is with this background that I hosted a panel discussion with four leading FinTech startup founders who focus on this sector to understand the space a little more. I spoke to Krishnan Parameswaran Cofounder and CTO, Namaste Credit, Ravish Naresh Founder Khatabook, Sumit Agarwal, Founder Vyapar and Yadvendra Tyagi, Founder EnKash.