The IVCA Conclave 2024 in Mumbai kicked off with a panel discussion featuring Shri Sivasubramanian Ramann, Chairman and Managing Director of the Small Industries Development Bank of India (SIDBI). The panel, which included industry leaders Munish Sharda from Axis Bank and Utpal Isser from Sarvagram, was moderated by Jyotsna Krishnan from Elevar Equity. The discussion focused on the topic “200Mn+ Entrepreneurial Households: An EPIC Growth Opportunity,” highlighting the potential of entrepreneurial households in India, particularly in Tier 2 and 3 cities.
Shri Ramann began by sharing insights into SIDBI’s efforts in supporting entrepreneurship, stating, “We have given about 2 lakh loans of 1 lakh ticket sizes to women borrowers.” He emphasized the increasing economic success of women in Tier 2 and 3 regions, noting that they are not only running successful businesses but also generating employment. He praised the entrepreneurial spirit of these households, emphasizing the need to capture their information in structured databases to facilitate access to credit.
Discussing the overall credit scenario, Shri Ramann highlighted the impact of the COVID-19 pandemic and the effectiveness of the Emergency Credit Line Guarantee Scheme (ECLGS). He stated, “₹3.64 lakh crores worthy loans were covered under ECLGS, of which only 5% were NPAs,” emphasizing the scheme’s success in minimizing loan defaults during a challenging period.
Looking ahead, Shri Ramann pointed out the significant demand for credit from the MSME sector, stating, “In the next 3–4 years, we are looking at the demand for credit from the MSME sector which is ₹30 trillion, while the entire MSME borrowing on date is ₹25 trillion.” He highlighted the need to ensure that this demand is met efficiently to support the sector’s growth.
In conclusion, Shri Ramann highlighted the shift from group loans to individual loans among Joint Liability Groups (JLGs) and Self-Help Groups (SHGs), indicating a positive trend towards empowering individual borrowers. He expressed optimism about the future of entrepreneurship in India, particularly in Bharat, and reiterated SIDBI’s commitment to supporting and empowering entrepreneurs across the country.
