India Stack 2.0 - Revolutionizing Credit and Market Access for 60 Million MSMEs

While India is the fifth largest economy in the world, the micro, small and medium enterprises (MSME) sector alone employs over 100 million people or about 40 percent of India’s workforce. However, current credit products are designed to service only a section of the MSMEs (600,000 of them) leaving out a whopping 60+ million MSMEs. Micro enterprises constitute 99.4 percent of MSMEs but have a miniscule credit share of 6-7 percent, compared with 70 percent enjoyed by large enterprises, leaving a credit gap of over $330 billion.

This webinar will look at how digital platforms and the digital infrastructure of the India Stack 2.0 are poised to bridge the gap between these MSMEs and financial services. Specifically, the panelists will discuss how initiatives like Open Credit Enablement Network – OCEN, and Government of India led e-Marketplace - GeM – Sahay will revolutionizing access to MSME Credit and promote access to markets. This new way to do business re-imagines an ecosystem, wherein every service provider can become a tech-enabled credit and product marketplace. Working in tandem with another initiative - the Account Aggregator (AA) framework - it allows cash-flow-based lending and last mile credit delivery to businesses and individuals at the bottom of the pyramid.