At a press conference held in Pune, Abhay Agarwal, Founder & CEO of Clinics on Cloud, emphasized the urgent need to modernize rural healthcare. India’s rural population often lacks access to timely diagnostic services, which delays treatment and increases health risks. Our Health ATM concept is designed to bridge this critical gap—bringing over 65 rapid diagnostic tests to the doorsteps of rural citizens,” he said.

These AI-enabled Health ATMs can perform a wide array of health checks—from routine vitals and blood pressure to advanced screenings for diabetes, cardiac conditions, hemoglobin levels, and infectious diseases like dengue, malaria, COVID-19, and HIV. Reports are generated instantly, ensuring timely medical consultation through telemedicine, even in remote regions.

Manashrri Agarwal, Co-founder & Managing Director of Clinics on Cloud, stated, “Our goal is to make preventive healthcare accessible, affordable, and accurate for every Indian, regardless of location. These Health ATMs have an accuracy rate of over 95% and operate at a fraction of the cost of traditional labs.”

In a unique collaboration with distribution partner DynaBlaze, Clinics on Cloud has engineered the Health ATMs to function without the need for electricity or internet, making them perfectly suited for deployment in electricity-deficient rural zones. The machines are available through EMI and rental options, also creating local employment opportunities by training health operators in villages.

Ajay Dhumane, spokesperson for DynaBlaze, added, “This is more than a healthcare solution—it’s a rural empowerment movement. By enabling easy ownership and operation of Health ATMs, we’re nurturing rural entrepreneurship while transforming public health outcomes.”

To date, over 80 lakh individuals have benefited from this initiative, with 3000 Health ATMs installed in 150+ Indian cities and 7 international markets.

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MUMBAI: The National Bank for Agriculture and Rural Development (NABARD) marked its 44th Foundation Day with a commemorative event in Chennai, celebrating its journey as a pivotal institution in India’s rural development. The occasion brought together key policymakers, state officials, banking leaders, and grassroots innovators to reflect on NABARD’s enduring mission and unveil a new chapter of forward-looking initiatives.

The celebrations were graced by Shri M. Nagaraju, Secretary, Department of Financial Services, Govt. of India; Shri N. Muruganandam, Chief Secretary, Government of Tamil Nadu; Shri Shaji K V, Chairman, NABARD, apart from Sri. G.S. Rawat and Sri A.K. Sood, Deputy Managing Directors of NABARD. The event also saw participation of MDs of Indian Bank and Indian Overseas Bank, apart from NABARD’s top leadership and senior officials from central and state governments.

A thought-provoking panel discussion on “Fostering Rural Enterprises for Inclusive Growth” set the tone for the evening, highlighting how rural entrepreneurship can serve as a key driver of job creation, innovation, and equitable development. An exhibition showcasing traditional crafts, agro-products, and rural innovations reflected the dynamic enterprise of India’s villages.

Shri Shaji K.V., Chairman, NABARD, in his address, stated, “NABARD’s 44-year journey is a testament to our unwavering commitment to rural transformation. From enabling access to finance and infrastructure to fostering innovation and resilience, our work has touched millions of lives. As India accelerates toward inclusive growth, NABARD is prepared to lead from the front through digital transformation, support for rural enterprises, and mission-led programmes that unlock grassroots potential. Our focus now is to scale high-impact solutions, nurture entrepreneurial ecosystems, and ensure sustainability remains at the heart of development.”

Shri M. Nagaraju, Secretary, DFS, GoI, lauded NABARD’s enduring impact: “For over four decades, NABARD has served as a cornerstone of India’s rural development strategy. Its initiatives reflect the government’s vision for an inclusive and future-ready rural economy. As we move into an era defined by climate challenges and digital opportunities, NABARD’s role in strengthening rural livelihoods and institutions will be more critical than ever.”

Shri N. Muruganandam, Chief Secretary of Tamil Nadu, acknowledged NABARD’s contributions in Tamil Nadu, saying that, “NABARD’s support has been instrumental in enhancing rural livelihoods and building self-reliant communities across Tamil Nadu. Its efforts in empowering SHGs, supporting infrastructure, and promoting inclusive finance are deeply appreciated.”

The evening witnessed the launch of several strategic initiatives aimed at expanding NABARD’s outreach and deepening its development impact:

• Inauguration of NABARD’s Sub-office in Leh, Ladakh, reinforcing its commitment to reach India’s most remote regions with credit, capacity building, and development finance.
• Launch of NABARD’s official WhatsApp Channel to enhance real-time communication and deliver market advisories, FPO information, and product updates directly to rural stakeholders.
• Radio Jingle for Financial Inclusion, targeting rural and semi-urban listeners across AIR and community radio networks with awareness messages on savings, credit, and insurance.
• Graduated Rural Income Generation Programme (GRIP), a livelihood intervention for ultra-poor rural households using returnable grants and capacity support to transition them into formal economic activity.
• RuralTech CoLab Portal, an open digital innovation platform enabling startups, research institutes, and tech developers to co-create, test, and scale rural-centric technologies.
• Launch of “NIVARAN”, a dedicated Internal Grievance Redressal System for Rural Cooperative Banks, offering 24×7 digital access for complaint resolution and governance improvement.

The evening also featured the premiere of “Green Roots: NABARD’s Journey Towards Climate Resilience”, a documentary chronicling NABARD’s decades-long work in promoting sustainable agriculture and environmental stewardship.

Additionally, the following publications were released:

• “RIDF@30: A Journey of Rural Transformation” – celebrating 30 years of the Rural Infrastructure Development Fund and its role in reviving rural connectivity, irrigation, education, and health infrastructure.
• “Grameen Bharat Mahotsav” Coffee Table Book – capturing the vibrant spirit of the January 2025 event at Bharat Mandapam, showcasing rural India’s entrepreneurial and cultural vibrancy.
• “Beyond Numbers 2025” – a narrative impact report highlighting NABARD’s multi-dimensional work across credit, climate, digital, and institutional ecosystems.

With a renewed sense of purpose and a host of visionary initiatives, NABARD’s 44th Foundation Day reinforced its stature as a vital national institution powering India’s rural future. The event reflected not only the achievements of the past but also the momentum for the road ahead, rooted in impact, inclusion, and innovation.

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The objective of this MoU is to strengthen livelihood opportunities in rural areas by combining the technical expertise and institutional framework of MSDE with the extensive grassroots reach and implementation capabilities of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).

The aim is to enhance the skills, market access, and entrepreneurial capabilities of women in Self-Help Groups (SHGs) so that they can become a part of the global workforce. A key focus of this collaboration is to raise awareness about the skill development and entrepreneurship programs of both ministries and to align these initiatives with local market needs and emerging opportunities.

Through this partnership, priority will be given to demand-driven skill training and practical entrepreneurship development to empower SHG women to become “Lakhpati Didis”. Efforts will be made to ensure that training modules and curricula are contextualized to local realities and aligned with emerging job markets and future skill requirements. Using the Skill India Digital Hub (SIDH), SHG women and trainers will receive formal certification for their skills. Additionally, comprehensive support will be provided through services such as financial literacy, market linkages, legal compliance, business development, and mentoring.

This partnership will not only help fulfill the economic aspirations of rural communities but will also play a pivotal role in promoting entrepreneurship and empowering rural families through outcome-based training programs. It reflects the shared commitment of both ministries to provide advanced skill training, entrepreneurship development, and sustainable employment opportunities to members of SHGs in rural India.

The signing of the MoU was graced by the Hon’ble Minister of State (Independent Charge) for Skill Development and Entrepreneurship, Shri Jayant Chaudhary, and the Hon’ble Union Minister for Agriculture & Farmers’ Welfare and Rural Development, Shri Shivraj Singh Chouhan. Minister of State for Rural Development and Communications, Dr. Chandrasekhar Pemmasani, was also present on the occasion.

This MoU is a concrete step towards realizing Prime Minister Shri Narendra Modi’s vision of ‘Viksit Bharat @2047’, which prioritizes economic diversification and sustainable development in rural areas. Together, the two ministries will work to economically empower women from SHGs, elevate them into higher income brackets through initiatives like the ‘Lakhpati Didi’ campaign, and provide training aligned with the needs of local markets.

This partnership aims to equip SHG women with digital and financial literacy, connect them to markets, enhance their legal awareness, and build capacity in business development. It will also ensure formal recognition of their skills through certification via SIDH. Training will be delivered at the grassroots level by leveraging networks of institutions such as ITIs, Jan Shikshan Sansthans, RSETIs, and NIESBUD. In addition, the partnership will jointly facilitate awareness campaigns, village-level camps, and entrepreneurship fairs to further strengthen outreach and impact.

Under this MoU, the implementation at the grassroots level will be strengthened by linking State Rural Livelihood Missions (SRLMs) with District Skill Committees (DSCs). Institutional coordination between SRLMs and DSCs will be facilitated to ensure that the skill development needs of SHG women are effectively integrated into the District Skill Development Plans (DSDPs).

The duration of this MoU is three years. To ensure regular monitoring of the partnership’s progress, a Joint Review Committee will be established, which will conduct quarterly reviews of the ongoing initiatives. Under this partnership, the MoRD, through the National Rural Livelihoods Mission, will also provide financial support for the implementation of targeted skill training and entrepreneurship development programs for beneficiaries from Self-Help Groups. This arrangement will help ensure the quality, effectiveness, and outreach of the training programs.

Under this partnership, the roles of MoRD and MSDE have been clearly defined. MoRD will be responsible for identifying beneficiaries, supporting curriculum development, disseminating training materials, providing entrepreneurship training to SHG women to help them establish viable enterprises, and coordinating state-level training programs.

On the other hand, MSDE will focus on developing skill-based curricula, organizing trainer training programs, leveraging existing skill infrastructure, providing certification through SIDH, and implementing an effective monitoring mechanism for the entire program. This coordinated effort will ensure that the training delivered is not only of high quality but also outcome-oriented.

On the occasion, Hon’ble Minister of State for Skill Development and Entrepreneurship, Shri Jayant Chaudhary, said, “This partnership marks a decisive step towards strengthening the social and economic foundation of rural India. It is a major initiative to bring livelihoods, skills, and entrepreneurship onto a common platform to empower millions of women in Self-Help Groups and make them self-reliant. Rural women will be provided with demand-driven training, digital and financial literacy, and opportunities for market linkages. This training will reach the grassroots level through the institutional networks of ITIs, RSETIs, JSS, and NIESBUD. Through the SIDH portal, we will also provide formal recognition of their skills. This is not just about economic empowerment—it lays the foundation for placing women in leadership roles, where they become not only job seekers but also job creators.”

“True equality is rooted in economic self-reliance, and today’s women are moving forward with an incredible capacity to learn. After receiving training, they have become even more empowered, and over 1.48 lakh ‘Lakhpati Didis’ are a living testament to this transformation. We aim to ensure that more and more Didis are trained in line with future requirements and become ‘Future-Skilled Didis’, making full use of the infrastructure of ITIs and polytechnic institutions. When India’s population becomes skilled, it becomes the world’s greatest strength. Today, the world needs skilled manpower, and when our hands are equipped with skills, India will lead not just within the country but globally as well. I extend my heartfelt congratulations to both the Ministry of Women and Child Development and the Ministry of Skill Development for this historic collaboration. This partnership will play a pivotal role in empowering 10 crore Didis in rural India and in realizing the vision of ‘Viksit Bharat 2047’,” Shri Shivraj Singh Chouhan, Union Minister, Ministry of Agriculture & Farmers’ Welfare and Ministry of Rural Development, Government of India, said.

The MoU signing ceremony was also attended by several senior officials. From MSDE, Secretary, Shri Atul Kumar Tiwari, Joint Secretary, Smt. Hena Usman, Additional Secretary, Smt. Sonal Mishra and Director Shri Preetam Dutta were present. Representing MoRD were the Secretary, Shri Shailesh Kumar Singh, the Joint Secretary, Ms. Swati Sharma, and the Additional Secretary, Shri T.K. Anil Kumar. On this occasion, the new websites of the Ministry of Rural Development and the Department of Rural Development were also launched.

It is noteworthy that this partnership will not only strengthen the confidence and economic status of rural women but also give fresh impetus to the ideals of ‘Vocal for Local,’ Aatmanirbhar Bharat, and women’s empowerment. This initiative stands as a milestone in accelerating India’s rural economy, opening new avenues for rural women and youth, and promoting social inclusion.

The post The Implications of the MSDE and Ministry of Rural Development MoU for Rural Women appeared first on NRI News.

BELLARY: In a transformative step towards rural empowerment, NMDC Ltd, India’s largest iron ore producer, has provided ten fully equipped Medical Mobile Vans and laid the foundation stone for a state-of-the-art Sports Complex in Sandur Taluk, Karnataka. Ms. Annapurna, MLA, Sandur Taluk, and Shri S. B. Singh, Head of Project, NMDC, flagged off the Medical Mobile Vans and jointly laid the foundation stone for the Sports Complex alongside the District Forest Officer of Bellary District.

NMDC has invested ₹7 crores to provide ten mobile medical vans for 2 years period in partnership with District Authorities, ensuring seamless healthcare access to the rural population across 97 villages in Sandur Taluka. Each mobile medical van, equipped with advanced diagnostic tools and staffed by a team of trained professionals, including a doctor, nurse, pharmacist, and lab technician, will bring critical healthcare services directly to residents’ doorstep, eliminating the need for arduous travel to the district headquarters hospital in Bellary.

The vans are equipped to conduct vital diagnostic tests such as those for pregnancy, typhoid, diabetes, hemoglobin levels, and more. Emergency provisions like oxygen cylinders further enhance their utility. These medical vans will visit all 97 villages in the region on a weekly rotation, ensuring timely medical attention at the doorstep of the residents. This initiative is set to significantly reduce the burden of healthcare access in the region, meeting immediate medical needs efficiently and fostering a healthier, more resilient community.

In addition to healthcare, to nurture young talents and promote fitness in the region, NMDC is investing ₹2 crores in building a modern Sports Complex in Sandur town. This facility will feature amenities like a badminton court, table tennis area, gym, and other professional-grade infrastructure to cater to local youth and sports enthusiasts. This initiative not only promises to ignite aspirations for professional sports careers but also aims to cultivate a culture of health and physical activity in the region. This cutting-edge sports complex will be open to access by the local population.

These initiatives, funded under NMDC’s CSR Fund underscore the organization’s holistic approach to community upliftment in the areas it operates. By bridging gaps in essential healthcare services and fostering avenues for sports excellence, NMDC is shaping a future where the people of Sandur Taluk can thrive with improved well-being and greater opportunities.

Speaking on the initiative, Shri Amitava Mukherjee, CMD (Addl. Charge), NMDC said, “Our mission at NMDC extends beyond mining; it is about enriching lives. The launch of these Medical Mobile Vans and the laying off foundation of the Sports Complex reaffirm our commitment to the people of the Donimalai region. We at NMDC believe that healthcare and sports are fundamental to the development of a vibrant and resilient community and we are proud to play a role in building a healthier, stronger, and more aspirational future for the people in Bellary-Hospet region.”

Through these landmark initiatives, NMDC is not just addressing immediate community needs but is also investing in the long-term development of the Donimalai region, empowering its people and nurturing aspirations for a brighter tomorrow.

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This project aims to deliver essential healthcare services to rural areas around Titwala, Murbad, Khandavali, and approximately 68 nearby villages. A significant challenge for residents in these regions has been the lack of timely medical transportation. Without reliable access to healthcare facilities during critical emergencies, many patients have struggled to receive the care they need. Recognizing this pressing issue, SBI General Insurance has stepped forward to support this vital initiative, which will deliver both emergency transportation and preventive healthcare services to thousands of people in these communities.

Speaking on the project, Rathin Lahiri, Head – Marketing & CSR at SBI General Insurance, said:  “We are proud to partner with Creative Group on this significant healthcare initiative. At SBI General Insurance, we are deeply committed to improving the health and well-being of communities, especially those in underserved areas. This partnership will ensure that people in Titwala and the surrounding rural region have access to timely medical care and preventive healthcare, ultimately making a positive impact on their lives.”

Vikrant Bapat, Chairman, of Creative Group, added: “Creative Group has been working for the last 24 years in the field of rural healthcare for Titwala and surrounding 68 villages,  initially through Creative Polyclinic for the first twelve years and the next twelve years through Shree Mahaganpati Hospital, which was the first multi-specialty secondary care level 50 bedded NABH accredited hospital. We receive over 150 emergency patients at our casualty per month, few patients need tertiary care, ambulance donated by SBI General Insurance will play a vital role in the safe transportation of patients, and also will help us to conduct free medical checkup camps at Adivasi padas and interior villages.”

The project aims to transport approximately 40-50 patients each month, ensuring they reach hospitals in time for critical care. In addition, 24 health camps will be organized throughout the region, providing free preventive health check-ups and consultations to around 1,000 individuals. These camps will help enhance early disease detection and raise overall health awareness within the community.

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Under this MoU, Tata Chemicals Limited and BAIF envisage building a partnership that leverages BAIF’s expertise in implementing agricultural practices for rural development, agro-biodiversity conservation, climate-smart agriculture, and renewable energy. They will also utilize TCL’s competencies across platform technologies of nutrition biosciences, nanotechnology, agro chemistry, advanced materials, and capabilities of rapid R&D translation for scale. 

“Tata Chemicals and BAIF have aligned interests to focus on the welfare of farmers and will put in joint efforts in new product development in Spineless Cactus and Hybrid Napier, which can be scaled up, the protocols transferred for the benefit of farmers and deliver innovative solutions for the country in bio-energy, fodder and bio-based products of value, such as bio-leather” said Dr. Richard Lobo – Head – Innovation, R&D, CQH and, Chief Ethics Counsellor at Tata Chemicals on the occasion of signing the MoU.

“Partnership with Tata Chemicals Limited will introduce newer climate-smart technologies for the benefit of rural communities. We are also keen on supporting Tata Chemicals’ agri-tech initiatives aimed at enhancing rural livelihoods. We look forward to working in close collaboration with the R&D facilities of Tata Chemicals to develop cutting-edge agricultural products and technologies,” said Dr. Bharat Kakade, President and Managing Trustee, of BAIF.

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Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India.

“The measures announced in the Union Budget underscore the government’s commitment to empowering MSMEs, the backbone of our economy. The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades.

Further, lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the sector.“

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The highlight of the celebration was a Panel Discussion on “Climate Risk Management and Banking.” The panel featured esteemed experts including Dr. Trupti Mishra, Professor at IIT Bombay, Shri Santosh Kumar Singh, MD of Intellecap, and Dr. Sat Singh Tomer, CEO of Satyukt (Start-up). The discussion was adeptly moderated by Shri Vivek Adhia from BCG. In addition, several significant publications were released, and a short film was launched to mark the occasion.

Laying out a brief timeline of the organization, NABARD Chairman Shri Shaji K. V. discussed NABARD’s journey over the past 4 decades. He said, “Over the past four decades, NABARD has been a cornerstone of rural development in India. From pioneering the SHG-Bank Linkage Program to supporting JLGs and FPOs, our initiatives have empowered millions of rural households and farmers. Our interventions have fostered financial inclusion, enhanced productivity, and driven sustainable development. Embracing digital transformation, we are helping GOI in computerizing 65,000 PACS and integrated Core Banking Solutions in numerous rural cooperative banks. As we continue to innovate and adapt, our mission remains the same: to uplift the rural economy, ensuring prosperity and resilience for all rural communities.”

Mr G.S. Rawat, DMD of NABARD, emphasized on the need to address the issues related to the agri and rural sectors of the country. “Despite the geographical and infrastructural limitations, our country is among the top 5 producers of agri-commodity in the world. There is still a credit gap in the northeastern regions of the country that needs to be addressed. NABARD is dedicated to working towards finding solutions to the challenges and bridging the gap by leveraging technology. We need innovations to ensure the credit flow to small farmers from remote areas of the country. Innovation will be a catalyst in enhancing the efficiency of the existing agri value chain”

Highlighting NABARD’s key role in the development and prosperity of rural India, Dr. A.K. Sood, DMD of NABARD, said, “Nothing delivers results like success, and we have consistently increased our credit flow to agriculture, delivering impactful results and touching the lives of millions of farmers over two-and-a-half decades. We are also embracing technology to explore new frontiers in financial inclusion, leveraging fintech for underserved rural India. Our challenges now are new—climate change, water scarcity, and an unceasing spiral of indebtedness among farmers. But shoulder-to-shoulder with all stakeholders, we will continue to strive to build a more inclusive and resilient rural India.“

Concluding the event, Shri Shaji K.V. reiterated the pivotal NABARD has to play in realizing the dream of ‘Vikasit Bharat’ by 2047. “We are also looking forward to strengthening the other sectors like fisheries and we believe that our initiatives will help in the growth of rural GDP to support the growth of our country. NABARD has an important role to play in strengthening the foundation of the vision of ‘Vikasit Bharat’ by 2047”.

The 43rd Foundation Day celebration of NABARD was a resounding success, reflecting its enduring legacy and future aspirations.

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Through its vision to  ‘Empower Rural Women Entrepreneurs’, WeAct has provided structured hand-holding support to 5,625 women micro-entrepreneurs in the Food & Agriculture industry, 5,921 in the Handloom & Handicrafts sector, and 1,924 in household supplies enabling them to make their businesses profitable and sustainable.

WeAct covers various aspects including market access, product development, and access to finance. Additionally, the initiative also facilitates statutory compliance processes, and technological adoption to enhance the competitiveness of women-led businesses.

WeAct also supports its members in adopting technology effectively. This enables entrepreneurs to leverage technology to streamline their operations and compete more effectively in the market.

Under WeAct, a wide range of business development services are offered to its members. This includes support in various crucial areas such as business planning, marketing, and management. This further helps women entrepreneurs enhance their business efficiency, increase profitability, and achieve sustainable growth.

“We are thrilled to have trained and supported hundreds of women micro-entrepreneurs through our WeAct initiative. This milestone reflects our dedication to empowering women entrepreneurs, and driving positive change in local economies”, said Dr. Sunil Shukla, Director General, EDII.

“Fostering inclusive economic growth in rural communities is our goal. By providing tailored training and support, we aim to create a conducive environment for women to thrive as successful entrepreneurs, catalyzing sustainable development”, said Dr. Raman Gujral, Director, Department of Projects (Corporate), EDII.

Samuel Moses Amarnath, Head of WeAct, has initiated transformative programs to empower rural women entrepreneurs. The new approach extends to new product development aligning with market standards, elevating packaging standards, and embracing technological advancements such as online marketing, social media marketing, and digital payments, innovative strategies have been implemented to unlock new potential clients and establish corporate relations. This resulted in conducting 100 exhibitions within various corporate premises and grassroots-level exhibitions conducted in 10 states and 29 districts pan India.

Key highlights of the initiative:

• Completion of over 3500 statutory compliance processes
• Onboarding of more than 2700 members onto e-commerce platforms like Amazon and Flipkart
• Provision of product development services to over 2800 members
• Participation of over 4000 members in energizer workshops and exposure visits
• Involvement of over 1000 members in exhibitions, resulting in revenue generation of ₹79 lakhs
• Facilitation of financial assistance totaling ₹45 lakhs
• Measuring enterprise revenue growth impact of ₹2.5 Crores after WeAct’s intervention

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Speaking on the findings of this edition of the MSME Pulse, Sivasubramanian Ramann, Chairman and Managing Director, of SIDBI, said: “Lending to the MSME sector continued in H1:FY2024, despite the conclusion of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme, indicating underlying growth momentum of the sector. Technology is aiding in lending to the MSME sector. Facilitating wider adoption of online loan applications, financial management tools, and digital payment platforms along with the utilization of robust analytics, can enhance the lending to the MSMEs and help fortify India’s businesses for sustained growth. SIDBI is working on the above lines and is leveraging technology, utilizing the Digital Public Infrastructure of the Government of India, to augment credit flow to the sector with faster turnaround.”

In the July-September 2023 quarter, the total value of new MSME credit originations was INR 243K Crores, with Small segment enterprises accounting for the largest share at 42%. Sustained credit supply has enabled substantial portfolio growth of 11% amounting to INR 28.2 Lakh Crores across 80 Lakh MSME entities­ in the quarter under review.

During this period, overall balance-level delinquencies, measured as 90 days past due to 720 days past due and those reported as ‘sub-standard’, have improved and stood at 2.3%.

“MSME portfolio performance improved across all borrower segments as delinquency rates declined. In the quarter ending September 2023, we saw the lowest delinquency rate in the last two years. With promising economic growth prospects reflected through strong demand, stable portfolio growth, and improved credit performance, now is a good time for lenders to expand their MSME lending book. The sectoral study covered in this MSME Pulse report showcases the unique nuances of each sector within the MSME segment. The wide spectrum of occupations covered by MSMEs has the potential of catalyzing social development through economic empowerment,” added Rajesh Kumar, Managing Director and CEO, of TransUnion CIBIL.

The MSME portfolio excludes ~ ₹ 2.5 lakh crores of default cases beyond 720 days past due (DPD) /loss /doubtful category. The delinquency rate definition excludes legacy accounts with DPD beyond 720 days or reported as loss/doubtful

By building an online lending journey with analytical and objective credit risk assessment tools like FIT Rank, lenders can achieve improved operational efficiencies and reduce turnaround times significantly.

Rapid credit expansion across semi-urban and rural geographies

In the July-September 2023 quarter, 46% of MSME originations were in semi-urban and rural regions. Almost half (49%) of the Micro2 segment’s originations came from the semi-urban and rural areas, whereas 39% of originations in the Small segment came from these regions.

• Micro Exposure up to INR 1 Cr; Small: Exposure between INR 1 Cr and INR 10 crs; Medium Exposure between INR 10 crs and INR 50 crs
• Medium Risk: CMR 4-6 (Share of Borrowers)
• The risk percentage is based on the origination data where the risk score is available.

One of the key factors contributing to this expansion is the improvement in credit profiles of MSMEs – the share of high-risk MSMEs (CMR 7-10) has reduced to 13% in the July-September 2023 quarter from 15% during the same period the previous year. Medium risk (CMR 4-6) continues to have a high share with 55% of MSMEs in this risk segment. 

Analysis across the states shows that originations from the large states with Maharashtra, Gujarat, Delhi, Tamil Nadu, and Uttar Pradesh continue to be high, accounting for 47.2% of the origination value. There is also a higher growth rate especially in Uttar Pradesh and Tamil Nadu in the quarter ending Sep 2023.

These states also account for approximately 42% of New-to-Credit (NTC) originations in the Micro MSME segment, further driving the credit inclusion initiative. Within the Micro MSME segment, Maharashtra has a high share in the low-ticket-sized Very Small segment and Micro1 segment, while Gujarat has a high share in the Micro 2 segment.

The manufacturing sector accounts for the highest credit originations

As per the latest information released by the Ministry of Statistics and Programme Implementation in December 2023, output in MSME manufacturing accounted for 40.83% of output in all India manufacturing during the year 2021-22. This is also reflected in TransUnion CIBIL Commercial Bureau data where the Manufacturing sector accounts for 37% of value originated and has the largest share, followed by the ‘Trades’ sector with a 28% share. Professional Services and Other Sectors together account for the remaining 35% share (of the data considered for this report).

Textiles is the highest contributing sub-sector within Manufacturing sector originations. The majority of originations within sub-sectors are led by the Medium segment (10 Crores to 50 Crores) and catered for by private banks. The geographical distribution of originations across sub-sectors is concentrated in three top-contributing states: Gujarat, Tamil Nadu, and Maharashtra. While the manufacturing sector accounts for 37% of origination value it has only 25% share of the volumes originated. However, the manufacturing sector experienced an increased share in originations by value within the Micro segment compared to the previous year. The ‘Trade’ sector accounts for the highest share of origination volumes with 39% of loans originating; 36% of these disbursements are from NTC MSMEs.

As the borrower profile and credit behavior of each sector is different, these borrowers’ credit performance is also differently influenced by intrinsic sectoral impact. Leveraging data and analytics to understand borrower behavior is essential to continue sustainable growth across sectors.  The core advantage of sector-wide growth is the vast geographical expanse it covers, spreading through areas where urbanization and multiple employment opportunities and development are essential.

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