Small Business: For critical MSME sustainability issue, fintech, PSUs are the key

Micro, Small and Medium Entreprises (MSMEs) have been facing sustainability crisis, especially after the IL&FS crisis as their lone credit line source, NBFCs have dried up. Now, the MSMEs are urging from the government to allow fintech firms to foray into the MSME lending segment. The industry insiders are of the opinion that the Indian government can help MSMEs to sustain by directing the Public Sector Units (PSUs) to buy at least 25 per cent of their purchases from the MSMEs. Speaking on the matter Rajeev Chawla, Chairman, IamSMEofIndia said, "Right now, the PSUs have been mandated to buy 20 per cent fo their purchase from the MSMEs. If it's increased to 25 per cent, it would be a good move and provide market support to the MSMEs."