LIVE: FM Nirmala Sitharaman LIVE: 37th Foundation Day of Sidbi | India | Banking |Economy

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[00:00:00]ing and the media.

[00:00:07]Since 1990, Sidi has been undertaking as a premier financial institution the promotion, financing and the development of MSMES. It's a unique organization primarily aiming to support India's growth through banking for the MSMA sector.

[00:00:33]So India's growth story cannot move forward without micro, small and medium enterprises and therefore the role of SIGB becomes all the more important.

[00:00:49]Today's launches are therefore tailored to address the real needs of the MSMES.

[00:01:00]the real needs such as easier credit, better machines, modern technology, rural enterprise support and also strong stronger market linkages.

[00:01:15]So with all these kept in mind, SID has come about with some specific tailormade approaches which can help the beneficiaries or the MSMES So the three important initiatives which have been launched I'd like to recall them.

[00:01:37]First is the SIDB RRB coal lending platform.

[00:01:42]This will combine SIDB's MSME financing experience the technology with the grassroots reach of the regional rural banks. This was said, it was also shown in the video that we saw.

[00:01:58]But it is worth underlining this point.

[00:02:03]In the process of wanting to develop institutions which can support economic activity at various times since 1947 in India, you've had institutions set up by the government. Sidi is one such 1990s and the regional rural banks have existed being sponsored by the bigger banks sponsored by also somewhat participating some states and so on. So the RRBs were going with the rural environment and rural economy in mind.

[00:02:44]Sidbe like institutions are being set up with a particular sector or area of activity in mind. They've run parallelly but it was one very random thought of why not have the synergy created between the two and that is why that idea of co-ending came about.

[00:03:08]It it will certainly help themmemes in rural se semi-urban areas and they can now get better, faster and more formal credit.

[00:03:21]The platform will also use an STP based digital joint lending model and aims at faster MSME credit taxes in rural semi- urban areas.

[00:03:35]The second initiative the modernization of rural enterprise very attractively acronymed more program this will support rural and non-farm enterprises and the Sydney CMD was explaining to me before I came here that as was shown in the video small units in rural areas such as the jaggery making unit these are examples they not confining themselves only to those activities. So the jagury making units, oil expellers, pottery and floor mills and also brass artisans.

[00:04:18]The aim is to provide better machines, better quality, safer working conditions, lower energy cost and better market access. So more as a clusterbased intervention for rural non-farm enterprises with support for energy efficient technologies, solar PV, micro mini grids and also access to capital. Look at the various important uh pegs on which the activity is going to be weaving itself around.

[00:04:54]sustainable growth, green growth, making sure sustainability and green priorities reach the smallest of units which so cannot afford to put money on these heads. They would rather have better efficient raw material procurement and get going. But on these things where there is a national commitment to improve green uh industries this initiative can place and play a very important role. The third one is the SIDB MSME exchange machinery portal.

[00:05:31]Many small entrepreneurs want to expand but they do not know which machine to buy, where to buy it from and how to finance it. This portal will bring machinery discovery and institutional finance together on one platform. I think this way many of the small entrepreneurs need not struggle to find which is the best fit of machines for their purpose. How much would it cost?

[00:06:04]Is it competitive? Is it uh you know out there in the market for everybody to see and is he or she making the right decision for the right price. All this is uh enabled through AI and it's a market where everybody participates without moving out from where they are.

[00:06:25]It's a beautiful use of technology bringing in AI and making it available for the smallest of our economic machines, economic engines. So I really appreciate the initiative taken by M.

[00:06:42]SIB on this because as was said earlier in the uh introductory video that we saw of MS of SBI the entrepreneurs whoever designed it I must say they've done a very good job very punchy two two lines for each of them I want to grow but I don't know where the money is or I don't know how to go purchase a machine punchy questions in a way I think They have tailor made it knowing very well that they're going to launch this program today. This program actually answers those questions. The portal integrates missionary discovery, OEM access and SIDB financing support to accelerate MSMA capital investment.

[00:07:32]Now in this context, it's important for us to understand what government's initiatives have been or government support has been. I'm not going to talk long list of what we've done in the 12 years. We've done a lot in the 12 years.

[00:07:46]I'm not saying this with a sense of oh we've done this but matter of fact we needed to do it. We have done some but it during the West Asia crisis in which situation context environment or current contemporary reality in which we are living. I would want to highlight those activities that we've been undertaking.

[00:08:12]Actually, these launches are taking place at a time when the global environment is uncertain. All of us recognize that the West Asia crisis not only is a diplomatic or a geopolitical issue for businesses and common people. It can mean higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertaintity in export orders. Just imagine all of them coming together because of that West Asia crisis. what is the uh sense of uncertainty this that small unit will feel and will they be in a position to make some kind of a plan it's a big challenge even for countries not just for India for many other countries and in that context therefore what is the kind of what is the depth of challenge for those MSMES the approach therefore has been and will have to be to protect citizens s support MSMES, safeguard exporters, keep supply chains moving and maintain economic stability.

[00:09:35]And that is why honorable prime minister giving a call to conserve foreign exchange as far as possible is very important in this context. I I will dwell on that for a minute because that's led to a lot of narrative all around the country. We need to understand the context in which the PM made this call. It is because of high international crude prices and the high crude prices are ever changing. It's seriously dynamic.

[00:10:12]one rate at one point in time within a week another within a week another and so on like that it has been for over now uh 80 90 days.

[00:10:28]So high international crude prices and very fluctuating one, high international fertilizer prices, unimaginable increase in the fertilizer prices, high gold prices that is creating some challenges on the external front. To just put it in a in context, all these three payments will have to be in foreign exchange. There is no rupee trading there.

[00:10:59]We should please understand the context of these three Fs.

[00:11:05]Three Fs fuel, fertilizer and foreign exchange.

[00:11:12]And the foreign exchange is for in this context purchase of gold.

[00:11:19]So we need to understand this and we also should appreciate that the challenges are more external driven. We must also recognize that India's domestic economic situation remains positive and resilient even today.

[00:11:38]For therefore those naysayers who jump into the scenario as it were and say, "Oh my god, you look around yourselves, it's all falling down. It's crumbling.

[00:11:52]it's going to hit you.

[00:11:57]There is a section I would think of Indians who very quickly want to decry the achievements of our own people and therefore for all the good that that is being done by the common people themselves that is forgotten and a pessimistic cynical narrative is generated which is just not right. It's not right is one thing but it is wrong because it is fear-mongering.

[00:12:26]India cannot afford fear-mongering. We need to give confidence to the people with our words and with our action and that's what you're seeing at various levels and today you're seeing it through SPI as well. So India continues with a robust economy. I'll give you data proof for it.

[00:12:48]GST revenues which indicate economic activity have remained strong even after rationalization. The rate rationalization which happened in September 25 gross GST collections crossed 22 lakh crores for the year 2526 rising 8.3%.

[00:13:15]The gross revenue year on year is 8.3% more and that's not a small number in these times of uncertainty.

[00:13:27]High frequency indicators also show broad-based domestic demand.

[00:13:33]I'll give you the data for April 2026, the first month of this financial year.

[00:13:41]Domestic wholesale tractor sales rose by 26%.

[00:13:47]Passenger vehicle domestic sales grew by 25%.

[00:13:53]Three-wheeler sales rose by 32%.

[00:13:58]Two-wheeler domestic sales increased by 28% yearonear.

[00:14:04]New business premiums of life insurers rose by 39%.

[00:14:11]So with that the healthy banking system is also supporting India's growth momentum. For the year 2526 gross NPA of public sector banks declined to 1.93%.

[00:14:32]Credit growth remained broad-based across retail, agriculture and Msmemes which grew by 18.1% 15.5% and 18.2% 2% respectively.

[00:14:50]Retail, agriculture and MSME.

[00:14:54]Corporate India's fourth quarter FY26 that is profit margin scaled highest level in 5 years.

[00:15:09]investment activity which normally all of us used to be talking about private sector investments are they slow are they not happening used to be a discussion I have the CI's data investment activity saw visible changes according to CI India's private sector capital expenditure grew 67% in September mber 2025 year on year how many 67%.

[00:15:46]So we should recognize that the private sector investments are coming forward.

[00:15:52]GST collections as I said are rising formalization is deepening.

[00:15:57]Infrastructure activity remains steady across the country.

[00:16:03]The policy response has been very calibrated.

[00:16:08]And it is calibrated to absorb the shock where citizens and businesses are exposed, support MSMES and exporters where working capital is under stress and preserve the underlying growth momentum.

[00:16:26]During the budget session itself and that is on 1st February itself, government provided over 1 lakh cr for the economic stabilization fund. That was much before the straight of problem came just to make sure that we're not caught by some unforeseen events. We had made the provision in the budget and this was an emergency cushion created before the full impact of the West Asia situation and so that India could respond quickly to global shocks, supply chain disruptions and also sudden stress in any sector.

[00:17:12]For MSMA exporters, credit guarantee support has been provided through the credit guarantee scheme for exporters and collateral support under the export promotion mission is also being provided.

[00:17:30]This helps small exporters get formal credit even when they do not have enough collateral. It protects export orders, jobs and foreign exchange earnings.

[00:17:44]When Indian export cargo, this is very important.

[00:17:50]When Indian export cargo was affect affected by disruption in West Asia shipping routes, customs procedures were simplified.

[00:18:04]Why did they have to be simplified?

[00:18:07]Exporters were allowed to bring back the cargo, rroot them or store them and transship stranded cargo were also that that way supported with fewer formalities.

[00:18:28]All formalities were dropped down to the bare minimum. Rrooing, bringing back are all normally very very painful exercises in terms of the rigors that they have to follow.

[00:18:41]Fees for amendment or cancellation of export documents were also waved in force major cases.

[00:18:51]This ensured that exporters were not punished for disruptions which were beyond their control.

[00:19:00]For microenterprises, a special micro credit card provision has been introduced under the CGTMSC. That's what you saw today being distributed to the beneficiaries. I would have wanted it to be done even earlier because more than 12 months have passed but never mind we are seeing the light uh at the end of the tunnel. UDAM registered microenterprises can access revolving credit up to five lakhs backed by 75% guarantee coverage and without mandatory primary security.

[00:19:42]So the government has since the day of Mudra guided by prime minister's absolute commit commit commitment to ensure that the smallest of small businesses which have no collateral strength will be supported and will continue to be supported. So we didn't just do it for mudra. We didn't just do it for that uh swanidi swanidi scheme.

[00:20:14]We didn't just do it for vishwa karma.

[00:20:17]We are continuing to do it even now for the micro credit which is being given.

[00:20:24]This is an important step for shopkeepers, small manufacturers and micro entrepreneurs who need timely working capital. As of March 2026, CGTMSSE has approved 1.42 cr number of cumulative guarantees worth 13.67 lakh crores.

[00:20:51]1.42 is the number of cumulative guarantees worth 13.6 lakh crores. Guarantee ceiling has been increased from 50 lakh to 10 crores with effect from 1st April 2025.

[00:21:12]Higher and extent of guarantee cover of 90% is available for women entrepreneurs.

[00:21:19]So to shield citizens therefore and businesses from the steep rise in global crude prices, central excise duty on petrol and diesel was reduced by 10 rupees per liter.

[00:21:37]The government is estimated to take a revenue impact of over 1 lakh cr on this one score in the year 2627 because of this one decision.

[00:21:53]So the burden for a considerable period because of that reduction in excise duty had been taken away from the shoulders of the common people because government has foregone or taken the burden of 1 lakh cr rupees on its shoulders to ensure domestic availability of fuel.

[00:22:17]export duty or cess was imposed on exports of petrol, diesel and aviation turbine fuel. So we not allowing export because it's earning foreign exchange without attending to the domestic markets needs. We in order to ensure that we have uh imposed a duty on exports.

[00:22:45]This was done so that domestic consumers, transporters, airlines and businesses get supply stability to pro protect manufacturing supply chains. Customs duty exemption was granted on specified critical prochemical products till June 2026, 30th June 2026.

[00:23:13]This supports sector such as plastic, packaging, textiles, pharmaceuticals, chemicals and automotive components.

[00:23:23]These are the sectors where many MSMES are active. So even this support has been given for the sake of MSMES and their raw material inter intermediary product requirement. So to help SCZ units affected by global trade disruptions, a one-time SEZ relief window was also notified.

[00:23:48]Eligible SEZ manufacturing units were allowed to sell goods into the domestic tariff area at concessional customs duty, helping them utilize capacity and protect production.

[00:24:07]to support MSMES, small businesses, traders, suppliers and service providers fa facing working capital stress. The union cabinet has approved the emergency credit liquidity guarantee scheme 5.0.

[00:24:28]The scheme targets additional credit flow of 2.55 lakh crores. That's the extent of the additional credit flow that we expect with 100% guarantee coverage for MSMES.

[00:24:44]Once again, it will help businesses manage liquidity, product protect jobs and sustain supply chains to keep maritime trade moving because even that's facing a lot of challenges.

[00:25:03]The Barat Maritime Insurance pool has been launched with a sovereign guarantee of $1.4 4 billion US that's about 12,980 cr Indian rupees.

[00:25:20]This will help uh ensure continued insurance coverage for Indian linked vessels and cargo movement even during maritime uncertainty.

[00:25:37]The vision for Sidi is something which I'd like to speak a minute about. They after all entering a very prime age of 37 and therefore I'm sure they will be energetic enough to carry forward the vision.

[00:25:54]MSMES contribute about 35% of manufacturing, 48% of exports and 31% of GDP with over 7.47 cr entrepreneurs 7.47 cr entrepreneurs i.e. use entrepreneurs as entrepreneurs or slash enterprises and they employ over 32 cr people in this country. In January 2026, the union cabinet approved an additional equity support of 5,000 crores to SIB.

[00:26:36]It will enable SIB to strengthen its balance sheet and add 25 lakh new MSME beneficiaries by the year 2028.

[00:26:50]Very clear vision.

[00:26:54]Very clear vision.

[00:26:56]And as I'm saying this, I can see that it is 25 lakh new MSME beneficiaries by 2028. Earlier I said that there are very high numbers of MSMES in this country and it is important for us to support them.

[00:27:21]This number therefore brings in a very big addition which I think is critical for us where you had 7.47 cr enterprises as of now you adding 25 lakh new MSME beneficiaries to the list by 2028.

[00:27:42]It's not some easy task but at the same time it's not a hazy or ambiguous target. Target is clear.

[00:27:55]By improving Sidb's capital to derisk their own uh exposure or to risk weighted assets ratio.

[00:28:06]We are ensuring that the institution can raise lower cost funds and pass that benefit on to small entrepreneurs through wider, cheaper and more accessible credit. I think in a way I would say it's good under this government the prime minister's guidance institutions are getting very clear vision forward. It's there for you. It's presented with reason to you.

[00:28:40]It's also supported with resources by the government.

[00:28:45]I can only say this brings greater clarity for the entire SIDB team. They're getting a target. They're getting the money.

[00:28:56]They're getting the government's vision put forward. It's because all of us have confidence in SIDB.

[00:29:08]So Sid's role must now expand from being only a lender to becoming a market maker and risksharing partner for India's MSME and startup ecosystem. It's a beautiful vision.

[00:29:27]Just stop. Sydney should stop stop being in that comfort zone of I'm a lender to the small enterprises. You're now going to be the market maker. You're now going to be the risk sharing partner for all the Msmemes and for the entire startup ecosystem. I also expect SIDB to deepen the venture capital uh debt market for startups so that innovative enterprises have access to patient, flexible and growth oriented capital. There is a need to expand cash flowbased lending and digital lending partnerships especially for micro and firsttime borrowers.

[00:30:15]Delayed payments remain a critical challenge for MSMES with an estimated 8.1 lakh crayed payments and affecting working capital and growth. So when I say this number, it's not a number just at the central government's doorstep.

[00:30:38]It's not a number which is pending payments of the public sector enterprises of government of India. No, not at all.

[00:30:46]This is this is the total number. It can be a private entrepreneur to MSME. It can be a commercial enterprise, a large one which has dues to the MSME. It can be the state PSUs which have a due to the MSME. So let's be clear this is a total figure and even as I say this I assure you periodically I review the public sector undertakings under the government of India to make sure that they don't exceed the 45day limit by which they have to pay the dues to the MSMES and they shall not be sitting over their dues that is being done by us so therefore So my message to Sidi and to every banker here is that standard products cannot serve non-standard businesses.

[00:31:45]A farmer linked enterprise does not earn every month.

[00:31:51]A resort does not earn evenly through the year.

[00:31:57]A government exporter waits for payment after shipment.

[00:32:02]A small auto component supplier waits for invoice clearance.

[00:32:09]A woman entrepreneur may have regular transactions yet no property in her name.

[00:32:17]Then why should all of them be given the same repayment structure?

[00:32:26]This is where SIDB must lead. Credit must be designed around the business cycle of the enterprise.

[00:32:37]For agree processing MSMES say in Nashik, Satara, Sangli, Vitherba, repayments can be linked to harvest cycles.

[00:32:52]A grape processor, turmeric unit or a pulse mill earns when the crop comes.

[00:33:01]Their credit should allow seasonal repayment and offseason flexibility.

[00:33:07]For textile and garment units in Ichal, Karanji or Solapo, credit must understand export cycle.

[00:33:18]If an order takes 90 days, finance should combine pre-hipment credit, post shipment support and currency risk protection for tourism and hospitality enterprises in Mahabaleshwar, Materan, Lunabla loans should recognize seasonality when earnings come in four strong months. Repayment should breathe with that cycle.

[00:33:52]For contract manufacturers in Pune, Chakan, Nagpur, invoices can become the basis of finance.

[00:34:03]Treads and gem linkages and invoice discounting can ensure that a supplier does not suffer only because payment comes after 60 or 90 days.

[00:34:18]Maharashtra also has a strong base of defense MSMES across Pune, Nagpur, Ahmed Nagar.

[00:34:27]Those enterprises Ahmed Nagar I think the name has changed. I'm saying Ahmed Nagar it is called Nagar but it has got a different name I think. Sorry those of you from Maharashtra >> Ailyanagar sorry.

[00:34:42]So different MSMmemes across Pune Nagpur and Ailyanagar should also have a different treatment given to them. These enterprises need order cycle financing, technology upgradation loans and working capital that understands long procurement cycles.

[00:35:06]SIB also should build strong green credit products. The world is moving towards green standards. MSMES will need finance for solar rooftops, energy efficient machinery, green certification and waste waste to wealth units. Today's initiatives already point in this direction. The SIDBRRB coal lending platform will also make credit deeper into rural and semi-rural India.

[00:35:42]The more program will modernize rural enterprises. The SIDB MSME exchange missionary portal will connect missionary discovery with finance. Now SIB should take this further. The aim should be to provide right credit for the right enterprise and at the right time for the right purpose.

[00:36:11]So I hope in the banking arena SIDB will show the path in which we will move in the right direction.

[00:36:21]That's how MSMES will move from survival and that's how MSMES will move from survival to scale.

[00:36:33]So in conclusion, you've been very patient hearing me all the while. Let me close with a larger frame.

[00:36:42]Today more than 32 crore Indians as I said earlier are employed in and through the MSME ecosystem.

[00:36:50]If we get MSME credit right, we get the Indian middle class right.

[00:36:57]If we get the Indian middle class right, we get Vikasit Barat right. It is that direct. So don't you think about Vikasit Bat somewhere, MSM somewhere else and don't you think about we can do our banking the way we want and think all of them are disconnected. you're directly linked towards the vision that is Vikasid Bat. It's not any one person or one leaders or one prime minister's uh vision. It's a vision for all of us Indians who within a generation are seeing transformational changes happening in this country despite the naysayers and we we cannot undermine the move towards Vikas bar. If anything we should help it. So if we get the middle class right as I said we'll get Vikasid bharat right everything that the government has announced the equity infusion the doubled guarantee cover the theme growth fund the treads reforms the classification reforms instruments uh for such as the corporate mitras the credit cards the standup scheme every one of these instruments exist to answer a single single question and that single question is how does India's MSME owner grow her enterprise without being held back by the cost of capital the weight of compliance or the gap between her and the customer.

[00:38:38]all those questions which were pertinently asked right at the beginning when you showed the video. So that's the question this government has committed itself to address and it is that question the SIDB on its 36 year completion entering into 37th year is being asked to answer with imagination.

[00:39:00]The support is being given. I want Sidi to answer it with brilliant imagination.

[00:39:07]To every MSME owner in this room, the government is building the rails.

[00:39:13]Sydney is being asked to build the imaginative products that turn and run on them.

[00:39:21]Our banks and our RRBs will carry them till the last mile. Your job is to build. I'm telling the MSMES your job is to build to hire to export and to innovate. We are here to support you and back you. So congratulations Sidb and the entire Sidb family on your 36th foundation day. Jen, secretary DFS, CMDs of uh several of the public sector banks, the beneficiaries of uh SIDB and RRB's uh co- lending and the media.

[00:40:23]Since 1990, Sidi has been undertaking as a premier financial institution the promotion, financing and the development of MSMES. It's a unique organization primarily aiming to support India's growth through banking for the MSMA sector.

[00:40:49]So India's growth story cannot move forward without micro, small and medium enterprises and therefore the role of SIGB becomes all the more important.

[00:41:05]Today's launches are therefore tailored to address the real needs of the MSMES.

[00:41:15]the real needs such as easier credit, better machines, modern technology, rural enterprise support and also strong stronger market linkages.

[00:41:30]So with all these kept in mind, SIB has come about with some with some specific tailormade approaches which can help the beneficiaries or the MSMES.

[00:41:47]So the three important initiatives which have been launched I'd like to recall them.

[00:41:54]First is the SIDB RRB coal lending platform.

[00:41:59]This will combine SIDB's MSME financing experience, the technology with the grassroots reach of the regional rural banks. This was said, it was also shown in the video that we saw.

[00:42:15]But it is worth underlining this point.

[00:42:20]in the process of wanting to develop institutions which can support economic activity at various times since 1947 in India you've had institutions set up by the government SIB is one such 1990s and the regional rural banks have existed being sponsored by the bigger banks sponsored by also somewhat participating some states and so on. So the RRBs were going with the rural environment and rural economy in mind.

[00:43:00]Sydney like institutions are being set up with a particular sector or area of activity in mind. they run parallelly but it was one uh very random thought of why not have the synergy created between the two and that is why that idea of co- lending came about it it will certainly help themmemes in rural se semi-urban areas and they can now get better faster and more formal credit.

[00:43:38]The platform will also use an STP based digital joint lending model and aims at faster MSME credit taxes in rural semi- urban areas.

[00:43:51]The second initiative, the modernization of rural enterprise very attractively acronymed more program.

[00:44:02]This will support rural and non-farm enterprises and the Sydney CMD was explaining to me before I came here that as was shown in the video small units in rural areas such as the jaggery making unit these are examples they are not confining themselves only to those activities. So jaggery making units, oil expellers, pottery and floor mills and also brass artisans.

[00:44:35]The aim is to provide better machines, better quality, safer working conditions, lower energy cost and better market access.

[00:44:44]So more as a clusterbased intervention for rural non-farm enterprises with support for energy efficient technologies, solar PV, micro mini grids and also access to capital. Look at the various important uh pegs on which the activity is going to be weaving itself around.

[00:45:10]sustainable growth, green growth, making sure sustainability and green priorities reach the smallest of units which so cannot afford to put money on these heads. They would rather have better efficient raw material procurement and get going. But on these things where there is a national commitment to improve green uh industries this initiative can place and play a very important role. The third one is the SIDB MSME exchange machinery portal.

[00:45:48]Many small entrepreneurs want to expand but they do not know which machine to buy, where to buy it from and how to finance it. This portal will bring machinery discovery and institutional finance together on one platform. I think this way many of the small entrepreneurs need not struggle to find which is the best fit of machines for their purpose. How much would it cost?

[00:46:21]Is it competitive? Is it uh you know out there in the market for everybody to see and is he or she making the right decision for the right price. All this is uh enabled through AI and it's a market where everybody participates without moving out from where they are.

[00:46:42]It's a beautiful use of technology bringing in AI and making it available for the smallest of our economic machines, economic engines. So I really appreciate the initiative taken by M Sidi on this because as was said earlier in the uh introductory video that we saw of MS of SBI the entrepreneurs whoever designed it I must say they've done a very good job very punchy two two lines for each of them I want to grow but I don't know where the money is or I don't know how to go purchase a machine uh punchy questions in a way I think they have tailor made it knowing very well that they're going to launch this program today this program actually answers those questions the portal integrates missionary discovery OEM access and SIDB financing support to accelerate MSMA capital investment now in this context it's important for us to understand what government's initiative atives have been or government support has been I'm not going to talk long list of what we've done in the 12 years we've done a lot in the 12 years I'm not saying this with a sense of oh we've done this but matter of fact we needed to do it we have done some but during the west Asia crisis in which situation context environment or current contemporary reality in which we are living I would want to highlight those activities that we've been undertaking.

[00:48:29]Actually, these launches are taking place at a time when the global environment is uncertain. All of us recognize that the West Asia crisis not only is a diplomatic or a geopolitical issue for businesses and common people. It can mean higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertaintity in export orders. Just imagine all of them coming together because of that West Asia crisis. what is the uh sense of uncertainty this that small unit will feel and will they be in a position to make some kind of a plan it's a big challenge even for countries not just for India for many other countries and in that context therefore what is the kind of what is the depth of challenge for those MSMES the approach therefore has been and will have to be to protect citizens support MSMES, safeguard exporters, keep supply chains moving and maintain economic stability.

[00:49:52]And that is why honorable prime minister giving a call to conserve foreign exchange as far as possible is very important in this context.

[00:50:06]I I will dwell on that for a minute because that's led to a lot of narrative all around the country. We need to understand the context in which the PM made this call. It is because of high international crude prices and the high crude prices are ever changing. It's seriously dynamic.

[00:50:29]one rate at one point in time within a week another within a week another and so on like that it has been for over now uh 80 90 days.

[00:50:44]So high international crude prices and very fluctuating one, high international fertilizer prices, unimaginable increase in the fertilizer prices, high gold prices that is creating some challenges on the external front. To just put it in a in context, all these three payments will have to be in foreign exchange. There is no rupee trading there.

[00:51:16]We should please understand the context of these three Fs.

[00:51:22]Three Fs fuel, fertilizer and foreign exchange.

[00:51:29]And the foreign exchange is for in this context purchase of gold.

[00:51:36]So we need to understand this and we also should appreciate that the challenges are more external driven. We must also recognize that India's domestic economic situation remains positive and resilient even today.

[00:51:54]For therefore those naysayers who jump into the scenario as it were and say, "Oh my god, you look around yourselves, it's all falling down. It's crumbling.

[00:52:09]it's going to hit you.

[00:52:14]There is a section I would think of Indians who very quickly want to decry the achievements of our own people and therefore for all the good that that is being done by the common people themselves that is forgotten and a pessimistic cynical narrative is generated which is just not right. It's not right is one thing but it is wrong because it is fear-mongering.

[00:52:43]India cannot afford fear-mongering. We need to give confidence to the people with our words and with our action and that's what you're seeing at various levels and today you're seeing it through SPI as well. So India continues with a robust economy. I'll give you data proof for it.

[00:53:05]GST revenues which indicate economic activity have remained strong even after rationalization. The rate rationalization which happened in September 25 gross GST collections crossed 22 lakh crores for the year 2526 rising 8.3%.

[00:53:32]The gross revenue year on year is 8.3% more and that's not a small number in these times of uncertainty.

[00:53:44]High frequency indicators also show broad-based domestic demand.

[00:53:50]I'll give you the data for April 2026, the first month of this financial year.

[00:53:58]Domestic wholesale tractor sales rose by 26%.

[00:54:04]Passenger vehicle domestic sales grew by 25%.

[00:54:10]Three-wheeler sales rose by 32%.

[00:54:15]Two-wheeler domestic sales increased by 28% yearonear.

[00:54:21]New business premiums of life insurers rose by 39%.

[00:54:28]So with that the healthy banking system is also supporting India's growth momentum. For the year 2526 gross NPA of public sector banks declined to 1.93%.

[00:54:49]Credit growth remained broad-based across retail, agriculture and Msmemes, which grew by 18.1%, 15.5% and 18.2% respectively.

[00:55:06]Retail, agriculture and MSME.

[00:55:11]Corporate India's fourth quarter FY26 that is profit margin scaled highest level in 5 years.

[00:55:26]Investment activity which normally all of us used to be talking about private sector investments are they slow are they not happening used to be a discussion. I have the CI's data.

[00:55:41]Investment activity saw visible changes.

[00:55:46]According to CI, India's private sector capital expenditure grew 67% in September 2025. Year on year, how many? 67%.

[00:56:03]So we should recognize that the private sector investments are coming forward.

[00:56:09]GST collections as I said are rising.

[00:56:12]Formalization is deepening.

[00:56:14]Infrastructure activity remains steady across the country.

[00:56:20]The policy response has been very calibrated and it is calibrated to absorb the shock where citizens and businesses are exposed, support MSMES and exporters where working capital is under stress and preserve the underlying growth momentum.

[00:56:43]During the budget session itself and that is on 1st February itself, government provided over 1 lakh cr for the economic stabilization fund. That was much before the straight of problem came just to make sure that we're not caught by some unforeseen events. We had made the provision in the budget and this was an emergency cushion created before the full impact of the West Asia situation and so that India could respond quickly to global shocks, supply chain disruptions and also sudden stress in any sector.

[00:57:29]For MSMA exporters, credit guarantee support has been provided through the credit guarantee scheme for exporters and collateral support under the export promotion mission is also being provided.

[00:57:46]This helps small exporters get formal credit even when they do not have enough collateral. It protects export orders, jobs and foreign exchange earnings.

[00:58:01]When Indian export cargo, this is very important.

[00:58:07]When Indian export cargo was affect affected by disruption in West Asia shipping routes, customs procedures were simplified.

[00:58:21]Why did they have to be simplified?

[00:58:24]Exporters were allowed to bring back the cargo, rroot them or store them and transship stranded cargo were also that that way supported with fewer formalities.

[00:58:45]All formalities were dropped down to the bare minimum. rrooting, bringing back are all normally very very painful exercises in terms of the rigors that they have to follow.

[00:58:58]Fees for amendment or cancellation of export documents were also waved in force majour cases.

[00:59:08]This ensured that exporters were not punished for disruptions which were beyond their control.

[00:59:17]For microenterprises, a special micro credit card provision has been introduced under the CGTMSC. That's what you saw today being distributed to the beneficiaries. I would have wanted it to be done even earlier because more than 12 months have passed but never mind we are seeing the light uh at the end of the tunnel. UDAM registered microenterprises can access revolving credit up to five lakhs backed by 75% guarantee coverage and without mandatory primary security.

[00:59:58]So the government has since the day of Mudra guided by prime minister's absolute commit commit commitment to ensure that the smallest of small businesses which have more collateral strength will be supported and will continue to be supported. So we didn't just do it for mudra. We didn't just do it for that uh swanidi swanidi scheme.

[01:00:31]We didn't just do it for vishwa karma.

[01:00:34]We are continuing to do it even now for the micro credit which is being given.

[01:00:41]This is an important step for shopkeepers, small manufacturers and micro entrepreneurs who need timely working capital. As of March 2026, CGTMSSE has approved 1.42 cr number of cumulative guarantees worth 13.67 lakh crores.

[01:01:08]1.42 is the number of cumulative guarantees worth 13.6 lakh crores. Guarantee ceiling has been increased from 50 lakh to 10 crores with effect from 1st April 2025.

[01:01:28]Higher and extent of guarantee cover of 90% is available for women entrepreneurs.

[01:01:36]So to shield citizens therefore and businesses from the steep rise in global crude prices, central excise duty on petrol and diesel was reduced by 10 rupees per liter.

[01:01:53]The government is estimated to take a revenue impact of over 1 lakh cr on this one score in the year 2627 because of this one decision.

[01:02:10]So the burden for a considerable period because of that reduction in excise duty had been taken away from the shoulders of the common people because government has foregone or taken the burden of 1 lakh cr rupees on its shoulders to ensure domestic availability of fuel.

[01:02:34]export duty or cess was imposed on exports of petrol, diesel and aviation turbine fuel. So we not allowing export because it's earning foreign exchange without attending to the domestic market's needs. We in order to ensure that we have uh imposed a duty on exports.

[01:03:02]This was done so that domestic consumers, transporters, airlines and businesses get supply stability to pro protect manufacturing supply chains.

[01:03:15]Customs duty exemption was granted on specified critical prochemical products till June 2026, 30th June 2026.

[01:03:30]This supports sector such as plastic, packaging, textiles, pharmaceuticals, chemicals and automotive components.

[01:03:40]These are the sectors where many MSMES are active. So even this support has been given for the sake of MSMES and their raw material inter intermediary product requirement. So to help SCZ units affected by global trade disruptions, a one-time SEZ relief window was also notified.

[01:04:05]Eligible SEZ manufacturing units were allowed to sell goods into the domestic tariff area at concessional customs duty, helping them utilize capacity and protect production.

[01:04:24]to support MSMES, small businesses, traders, suppliers and service providers fa facing working capital stress. The union cabinet has approved the emergency credit liquidity guarantee scheme 5.0.

[01:04:45]The scheme targets additional credit flow of 2.55 lakh crores. That's the extent of the additional credit flow that we expect with 100% guarantee coverage for MSMES.

[01:05:01]Once again, it will help businesses manage liquidity, product protect jobs and sustain supply chains to keep maritime trade moving because even that's facing a lot of challenges.

[01:05:19]The Barat Maritime Insurance pool has been launched with a sovereign guarantee of $1.4 4 billion US that's about 12,980 cr Indian rupees.

[01:05:37]This will help uh ensure continued insurance coverage for Indian linked vessels and cargo movement even during maritime uncertainty.

[01:05:54]The vision for Sidi is something which I'd like to speak a minute about. They after all entering a very prime age of 37 and therefore I'm sure they will be energetic enough to carry forward the vision.

[01:06:11]MSMES contribute about 35% of manufacturing, 48% of exports and 31% of GDP with over 7.47 cr entrepreneurs 7.47 47 crore entrepreneurs i.e. youth entrepreneurs as entrepreneurs or slash enterprises and they employ over 32 cr people in this country. In January 2026 the union cabinet approved an additional equity support of 5,000 crores to SIB.

[01:06:52]It will enable SIB to strengthen its balance sheet and add 25 lakh new MSME beneficiaries by the year 2028.

[01:07:06]Very clear vision.

[01:07:11]Very clear vision.

[01:07:13]And as I'm saying this, I can see that it is 25 lakh new MSME beneficiaries by 2028. Earlier I said that there are very high numbers of MSMES in this country and it is important for us to support them.

[01:07:37]This number therefore brings in a very big addition which I think is critical for us where you had 7.47 cr enterprises as of now you adding 25 lakh new MSME beneficiaries to the list by 2028.

[01:07:59]It's not some easy task but at the same time it's not a hazy or ambiguous target. Target is clear.

[01:08:12]By improving SIDB's capital to derisk their own uh exposure or to risk weighted assets ratio.

[01:08:22]We are ensuring that the institution can raise lower cost funds and pass that benefit on to small entrepreneurs through wider, cheaper and more accessible credit. I think in a way I would say it's good under this government the prime minister's guidance institutions are getting very clear vision forward. It's there for you. It's presented with reason to you.

[01:08:57]It's also supported with resources by the government.

[01:09:02]I can only say this brings greater clarity for the entire SIDB team. They're getting a target. They're getting the money.

[01:09:13]They're getting the government's vision put forward. It's because all of us have confidence in SIDB.

[01:09:24]So, Sid's role must now expand from being only a lender to becoming a market maker and risksharing partner for India's MSME and startup ecosystem. It's a beautiful vision.

[01:09:43]Just stop. Sydney should stop stop being in that comfort zone of I'm a lender to the small enterprises. You're now going to be the market maker. You're now going to be the risk sharing partner for all the Msmemes and for the entire startup ecosystem. I also expect SIDB to deepen the venture capital uh debt market for startups so that innovative enterprises have access to patient, flexible and growth oriented capital. There is a need to expand cash flowbased lending and digital lending partnerships especially for micro and firsttime borrowers.

[01:10:32]Delayed payments remain a critical challenge for MSMES with an estimated 8.1 lakh crayed payments and affecting working capital and growth. So when I say this number, it's not a number just at the central government's doorstep.

[01:10:55]It's not a number which is pending payments of the public sector enterprises of government of India. No, not at all.

[01:11:02]This is THIS IS THE TOTAL NUMBER. It can be a private entrepreneur to MSME. It can be a commercial enterprise, a large one which has dues to the MSME. It can be the state PSUs which have a due to the MSME. So let's be clear this is a total figure and even as I say this I assure you periodically I review the public sector undertakings under the government of India to make sure that they don't exceed the 45day limit by which they have to pay the dues to the MSMES and they shall not be sitting over their dues that is being done by us so therefore So my message to Sidi and to every banker here is that standard products cannot serve non-standard businesses.

[01:12:01]A farmer linked enterprise does not earn every month.

[01:12:08]A resort does not earn evenly through the year.

[01:12:13]A government exporter waits for payment after shipment.

[01:12:19]A small auto component supplier waits for invoice clearance.

[01:12:26]A woman entrepreneur may have regular transactions yet no property in her name.

[01:12:34]Then why should all of them be given the same repayment structure?

[01:12:42]THIS IS where SIDB must lead. Credit must be designed around the business cycle of the enterprise.

[01:12:54]For agree processing MSMES say in Nashik, Satara, Sangi, Vitherba, repayments can be linked to harvest cycles.

[01:13:09]A grape processor, turmeric unit or a pulse mill earns when the crop comes.

[01:13:17]Their credit should allow seasonal repayment and offseason flexibility for textile and garment units in Ichal Karanji or Solapo.

[01:13:31]Credit must understand export cycle. If an order takes 90 days, finance should combine pre-shipment credit, post shipment support and currency risk protection for tourism and hospitality enterprises in Mahabaleshwar, Materan, Lunabla loans should recognize seasonality when earnings come in four strong months.

[01:14:05]Repayment should breathe with that cycle.

[01:14:09]For contract manufacturers in Pune, Chakan, Nagpur, invoices can become the basis of finance.

[01:14:20]Treads and gem linkages and invoice discounting can ensure that a supplier does not suffer only because payment comes after 60 or 90 days.

[01:14:34]Maharashtra also has a strong base of defense MSMES across Pune, Nagpur, Ahmed Nagar.

[01:14:44]Those enterprises Ahmed Nagar I think the name has changed. I'm saying Ahmed Nagar it is called Nagar but it has got a different name I think. Sorry those of you from Maharashtra Ailyagar sorry.

[01:14:59]So defense MSMmemes across Pune Nagpur and Ailyanagar should also have a different treatment given to them. These enterprises need order cycle financing, technology upgradation loans and working capital that understands long procurement cycles.

[01:15:23]SIB also should build strong green credit products. The world is moving towards green standards. MSMES will need finance for solar rooftops.

[01:15:38]energy efficient machinery, green certification and waste waste to wealth units. Today's initiatives already point in this direction. The SIDBRRB coal lending platform will also make credit deeper into rural and semi-rural India.

[01:15:58]The more program will modernize rural enterprises. The SIDB MSME exchange missionary portal will connect missionary discovery with finance. Now SIB should take this further. The aim should be to provide right credit for the right enterprise and at the right time for the right purpose.

[01:16:27]So I hope in the banking arena SIDB will show the path in which we will move in the right direction.

[01:16:38]That's how MSMES will move from survival and that's how MSMES will move from survival to scale.

[01:16:50]So in conclusion, you've been very patient hearing me all the while. Let me close with a larger frame.

[01:16:58]Today more than 32 crore Indians as I said earlier are employed in and through the MSME ecosystem.

[01:17:07]If we get MSME credit right, we get the Indian middle class right.

[01:17:14]If we get the Indian middle class right, we get Vikas barat right. It is that direct. So don't you think about Vikasit bat somewhere MSM somewhere else and don't you think about we can do our banking the way we want and think all of them are disconnected you're directly Clean.