Guwahati, June 08 (NKTV): The World Bank has approved a USD 500 million program, to help boost India’s MSME sector, that targets improvement in the performance of 5.5 lakh MSMEs.
As per reports, of all the MSMEs in India, more than 40 per cent lack access to formal sources of finance whereas the MSME sector contributes 30 per cent of India’s GDP and 40 percent of exports.
It may be mentioned here that the USD 500 million program – Raising and Accelerating Micro, Small and Medium Enterprise (MSME) Performance (RAMP) – is the World Bank’s second intervention in this sector.
World Bank Country Director Junaid Ahmad said “The MSME sector is a critical backbone of India’s economy and has been hard hit by the Covid-19 pandemic. The RAMP program will provide better access to finance and working capital for MSMEs by strengthening the receivable financing markets. It will also scale up online dispute resolution mechanisms to address the problem of delayed payments”.
Inputs from AIR