Mumbai: UGRO Capital brought together policymakers, regulators, banking leaders, capital market institutions and fintech platforms under its “India by MSME” initiative to deliberate on structurally addressing India’s MSME credit gap and strengthening inclusive economic growth.

The platform has been conceived as a continuing institutional forum designed to align policy intent, regulatory clarity, capital participation and technology-led underwriting frameworks to deepen formal credit penetration across India’s emerging markets.

The initiative was inaugurated by Shri Mangal Prabhat Lodha, Hon’ble Minister of Skill, Employment, Entrepreneurship and Innovation, Government of Maharashtra. Senior leaders in attendance included Ravi Ranjan, Managing Director, State Bank of India; Manoj Mittal, Chairman & Managing Director, SIDBI; Amish Mehta, MD & CEO, CRISIL Limited; Navneet Munot, MD & CEO, HDFC Asset Management Company Limited; Apurva Kumar, Unit Head – South Asia, Asian Development Bank; Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet; Harsh Mittal, Head – Merchant Lending, PhonePe, among other industry leaders.

Addressing the gathering, Shri Mangal Prabhat Lodha emphasised that structured and affordable credit access for MSMEs remains central to employment generation and entrepreneurship-led growth. Ravi Ranjan, Managing Director, State Bank of India, noted that while GST adoption, digital payments and bureau integration have strengthened MSME formalisation over the past decade, the next phase requires disciplined collaboration between banks, NBFCs and fintech platforms to responsibly scale credit access. Manoj Mittal, Chairman & Managing Director, SIDBI, highlighted the need for partnership-driven credit expansion anchored in strong data governance and prudent risk management frameworks.

The event also marked the release of the fourth edition of the MSME Sampark Report, developed by UGRO Capital in collaboration with Dun & Bradstreet. The report analyses over 73,000 MSMEs across eight sectors: Auto Components, Light Engineering, Chemicals, Education, Hospitality, Textile, Electrical Equipment and Food Processing along with insights from more than 16,000 Emerging Market customers across India.

Key findings indicate that 86% of surveyed MSMEs operate below ₹20 crore turnover, with increasing preference for secured, longer-tenure term loans and rising average ticket sizes accompanied by disciplined sanction growth. The report also notes declining reliance on microfinance and gold loans, alongside accelerating UPI adoption and reduced cash dependence, signalling a structural shift toward formal and mainstream credit channels. Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet, observed that these findings reflect accelerating MSME formalisation and improving credit behaviour across sectors.

Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “MSMEs contribute nearly 31% to India’s GDP and are central to employment generation. Yet the structural credit gap remains significant. India by MSME has been conceived as a continuing institutional platform to align policymakers, regulators, banks, NBFCs, fintech platforms and capital providers so that credit flows structurally and responsibly to India’s entrepreneurs. We believe the next phase of India’s growth will be MSME-led, data-driven and partnership-powered.”