The Small Industries Development Bank of India (SIDBI) celebrated its 37th Foundation Day in Mumbai with the launch of several transformative initiatives aimed at strengthening India’s micro, small and medium enterprises (MSME) ecosystem, improving last-mile credit delivery and modernising rural industries. The event was attended by Union Finance and Corporate Affairs Minister Nirmala Sitharaman, senior government officials, MSME stakeholders and industry representatives.
During the programme, the Finance Minister unveiled a series of strategic platforms and schemes designed to improve credit accessibility, technology adoption and financial inclusion for small businesses across the country. She also reviewed SIDBI’s transformation initiatives and interacted with entrepreneurs and MSME stakeholders.
Addressing the gathering, Sitharaman said the newly launched initiatives were tailored to address the practical needs of MSMEs by ensuring easier access to finance, better machinery support, stronger market linkages and improved rural enterprise development. She highlighted the significant role played by MSMEs in India’s economic growth, noting that the sector contributes nearly 35 per cent of manufacturing output, 48 per cent of exports and around 31 per cent of the country’s GDP.
The Finance Minister further stated that India’s MSME sector comprises more than 7.47 crore entrepreneurs and provides employment to over 32 crore people nationwide. Emphasising the importance of strengthening the sector, she recalled that the Union Cabinet had approved an additional equity support of ₹5,000 crore to SIDBI in January 2026. According to her, the capital infusion will help SIDBI expand its outreach and add nearly 25 lakh new MSME beneficiaries by 2028.
Sitharaman stressed that SIDBI’s role should evolve beyond being only a lender and transform into a market maker and risk-sharing institution for the country’s MSME and startup ecosystem. She also underscored the need to deepen venture capital and debt financing avenues so that startups and innovative enterprises can access flexible and long-term funding support.
The Minister said that strengthening SIDBI’s balance sheet would enable the institution to raise lower-cost funds and pass on the benefits to entrepreneurs through wider and more affordable credit access.
Speaking at the event, Shri Sanjay Lohiya, Special Secretary in the Department of Financial Services, highlighted SIDBI’s transformation into a key pillar of India’s MSME financial architecture. He emphasised the growing importance of co-lending models, digital financing systems and risk-sharing frameworks in addressing challenges such as technological disruptions, supply chain issues and climate-related transitions affecting small businesses.
Lohiya also stressed the need for cluster-based development, non-debt financing mechanisms and inclusive funding strategies for women entrepreneurs and first-generation business owners.
SIDBI Chairman and Managing Director Shri Manoj Mittal said the newly launched initiatives represented a major step towards transforming MSME financing through technology integration and strategic partnerships. He added that SIDBI remains focused on improving credit delivery, operational efficiency and rural enterprise modernisation to make small businesses more productive and globally competitive.
Among the major initiatives launched during the event was the SIDBI-RRB Co-Lending Platform, a digital joint lending framework aimed at improving MSME credit penetration in rural and semi-urban areas. The platform combines SIDBI’s digital and MSME financing expertise with the grassroots outreach network of Regional Rural Banks.
Another key initiative was the Modernization of Rural Enterprises (MoRE) Programme, a cluster-based intervention that will provide credit and advisory support to rural non-farm enterprises such as jaggery units, flour mills, pottery businesses, oil expellers and brass artisan enterprises.
The Finance Minister also launched the Micro Credit Card Scheme for Micro Enterprises, which will allow Udyam-registered micro enterprises to access revolving credit of up to ₹5 lakh with 75 per cent guarantee coverage and without mandatory primary collateral security.
Additionally, SIDBI introduced the MSME Exchange – Machinery Portal, a digital platform integrating machinery discovery with institutional financing support to help MSMEs adopt advanced technologies and accelerate capital investment.
During the programme, credit cards under the Micro Credit Card Scheme were distributed to beneficiary entrepreneurs. The event concluded with a renewed commitment from SIDBI and the government to strengthen India’s MSME ecosystem through innovation, inclusive financing, digital transformation and collaborative partnerships.
Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
