Financing of Small-Scale Industries in India: A Survey of Literature

Abstract

MSMEs are essential for India's economy, providing job opportunities, industrial production, exports, and regional development. They have been instrumental in promoting exports from India and have a significant impact on regional development. However, they face challenges such as limited access to finance, lack of infrastructure, technological constraints, and regulatory complexities. To maximize their potential contribution, it is important to address these challenges and provide a favorable environment for their growth. The purpose of the study was to review the financial problems faced by small-scale industries (SSIs) in India and investigate alternative financing options such as nonbank financial institutions. The conclusions emphasize the importance of addressing the financial constraints faced by SSIs in order to support their growth and development, and call for the intervention of state and central governments.