FM: SIDBI Must Be Market Maker, Risk-Sharing Partner For MSME & Startup Ecosystem
FinTech BizNews Service
Mumbai, 25 May 2026: SIDBI celebrated its 37th Foundation Day in Mumbai in the presence of Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, who launched a set of strategic portals and initiatives aimed at strengthening the MSME ecosystem, enhancing last-mile credit delivery and accelerating the modernization of rural industries.
During the programme, the Union Finance Minister reviewed SIDBI’s transformation initiatives, interacted with MSME stakeholders and appreciated the institution’s role in strengthening the MSME ecosystem through innovation and partnerships.
Speaking at the event, the Union Finance Minister said that the initiatives launched by SIDBI are tailored to address the real needs of MSMEs, including easier credit access, better machinery, modern technology adoption, rural enterprise support and stronger market linkages.
Highlighting the contribution of MSMEs to the Indian economy, Smt. Sitharaman said that MSMEs contribute nearly 35 per cent of manufacturing output, 48 per cent of exports and around 31 per cent of India’s GDP. She noted that the sector comprises over 7.47 crore entrepreneurs and provides employment to more than 32 crore people across the country.
The Union Finance Minister further stated that the Union Cabinet, in January 2026, approved an additional equity support of ₹5,000 crore to SIDBI, which will strengthen the institution’s balance sheet and enable it to add 25 lakh new MSME beneficiaries by the year 2028.
Emphasising the evolving role of SIDBI, Smt. Sitharaman said that SIDBI’s role must now expand from being only a lender to becoming a market maker and risk-sharing partner for India’s MSME and startup ecosystem. She also underlined the importance of deepening the venture capital and debt market for startups to ensure that innovative enterprises receive patient, flexible and growth-oriented capital.
The Finance Minister noted that strengthening SIDBI’s capital base would help the institution raise lower-cost funds and pass on the benefits to small entrepreneurs through wider, cheaper and more accessible credit.
Speaking at the event, Shri Sanjay Lohiya, Special Secretary, Department of Financial Services, highlighted SIDBI’s evolution from a credit delivery institution into a key pillar of India’s MSME financial architecture. He emphasised the importance of risk-sharing frameworks, co-lending models and digital transformation to address emerging MSME challenges such as supply chain disruptions, technological changes and climate transitions. He also stressed the need for cluster-based development, non-debt financing channels and inclusive financing strategies for women entrepreneurs and first-generation businesses.
Addressing the gathering, Shri Manoj Mittal, Chairman and Managing Director, Small Industries Development Bank of India, said that the initiatives mark a significant step in SIDBI’s efforts to transform MSME financing through digital enablement and partnerships. He stated that the focus remains on improving credit access, delivery efficiency and technology adoption while supporting the modernisation of rural enterprises to make them more competitive, productive and future-ready.
The following key initiatives were formally launched by the Union Minister of Finance and Corporate Affairs to strengthen India’s MSME ecosystem:
• SIDBI-RRB Co-Lending Platform: A digital joint lending model designed to enhance MSME credit penetration in semi-urban and rural areas by combining SIDBI’s MSME expertise and digital capabilities with the grassroots outreach of Regional Rural Banks.
• Modernization of Rural Enterprises (MoRE) Programme: A cluster-based intervention providing credit and credit-plus support to modernise rural enterprises engaged in non-farming activities such as jaggery units, oil expellers, pottery units, flour mills and brass artisan enterprises.
• Micro Credit Card Scheme for Micro Enterprises: A scheme enabling Udyam-registered micro enterprises to access revolving credit of up to ₹5 lakh with 75 per cent guarantee coverage and without mandatory primary security.
• SIDBI MSME Exchange – Machinery Portal: A technology-driven digital platform integrating machinery discovery with institutional financing support to accelerate MSME capital investment and technology adoption.
During the programme, credit cards under the Micro Credit Card Scheme were also distributed to beneficiary micro enterprises. The event concluded with a renewed commitment to strengthening India’s MSME ecosystem through innovation, inclusive financing, technology adoption and collaborative partnerships.
