India pushes for wider MSME credit and entrepreneurship to spur GDP growth

India’s Finance Ministry highlighted the critical role of small and medium enterprises in the country's next growth phase, noting that nearly 2.3 crore MSMEs fall in an under‑financed segment representing about 60 % of a ₹43 trillion credit gap. Improving access to affordable, timely credit for these businesses is seen as a way to boost productivity, create jobs and accelerate inclusive GDP expansion.

Finance Minister Nirmala Sitharaman urged entrepreneurs to drive the nation’s development, citing more than 2.4 lakh recognised startups that have generated over 23 lakh jobs and a digital payments ecosystem that processes more than 20 billion UPI transactions monthly. She emphasized a shift in government policy from control to enablement, calling for greater focus on AI in agriculture, food processing and other emerging sectors, and underscored the importance of regulatory reforms, digitisation and infrastructure in expanding market access.