Priyadarshani Baruah A
The Micro, Small, and Medium Enterprises (MSME) sector play a crucial role in driving economic development in India, particularly in rural areas where a significant portion of the population lacks access to large-scale business opportunities. Additionally, the growth rate in India's North-Eastern region has been slower compared to the rest of the country. The MSME sector contributes to reducing income inequality and promoting balanced economic growth by providing employment opportunities to disadvantaged sections of society. Despite its pivotal role in economic growth, the MSME sector faces numerous challenges, primarily stemming from a lack of formal structure, inadequate access to financing, and limited market connections. This study focuses on assessing the level of MSME sector development in North East India, with a particular emphasis on NEDFi (North Eastern Development Finance Corporation). The primary objective is to evaluate the amount of loans approved and disbursed to the MSME sector in the region. For comparative purposes, four banks were chosen based on their presence in the region. The study's findings reveal that the State Bank of India has been effective in meeting the financial needs of the North East Region. However, there is room for growth for the other banks examined in the study. Among the North Eastern states, Tripura appears to be lagging in the development of the MSME sector.
Keywords:MSME, NEDFi, Banks, Credit Flow