World Bank approves US$500 million programme to support India’s MSMEs
The World Bank has approved a US$500 million programme to support India’s micro, small, and medium enterprises (MSMEs) that have been hit badly by the pandemic.
The Raising and Accelerating Micro, Small and Medium Enterprise (MSME) Performance (RAMP) Programme targets improving the performances of 555,000 MSMEs and is expected to mobilise financing of US$15.5 billion. It will also support the Indian government’s efforts to increase the productivity of MSMEs and financing in the economic recovery phase.
In the medium term, RAMP aims to pool private sector financing and tackle long-standing financial sector issues that are holding back the growth of MSMEs.
The MSME sector contributes 30% of India’s GDP and 40% of exports, said the World Bank in a press statement. Out of 58 million MSMEs in India, it finds that over 40% lack access to formal sources of financing.
“The RAMP programme will intensify efforts to support firms to return to pre-crisis production and employment levels, while laying the foundations for longer-term productivity-driven growth and generation of much-needed jobs in the MSME sector,” said Junaid Ahmad, World Bank Country Director in India.