May 25: Finance Minister Nirmala Sitharaman has urged the Small Industries Development Bank of India (SIDBI) to move beyond its traditional lending function and evolve into a comprehensive growth enabler for the micro, small and medium enterprises (MSME) sector.
She said SIDBI should play a more proactive role in supporting MSMEs not only through credit, but also by offering advisory support, capacity-building assistance, and guidance to help businesses scale and innovate.
The Finance Minister underlined that MSMEs are a crucial pillar of India’s economy, contributing significantly to employment generation and industrial growth, and therefore require stronger institutional support to enhance competitiveness.
She added that strengthening SIDBI’s developmental role would help small businesses integrate better into domestic and global value chains, improve productivity, and adapt to changing market conditions.
The remarks highlight the government’s focus on building a more robust MSME ecosystem that goes beyond financing and encourages long-term business growth and sustainability.