The union government will expand branches of the Small Industrial Development Bank of India (SIDBI) to serve the micro, small and medium enterprises (MSME) clusters within three years, Union Finance Minister Nirmala Sitharaman said. “SIDBI to expand branches to serve all MSME clusters within 3 years,” Sitharaman said in her budget address.
The branches will cover 168 clusters of the total 242 clusters, she added. "With the opening of 24 such branches this year, the service coverage will expand to 168 out of 242 major clusters," Sitharaman said.
Also read: Government will prepare vision and strategy documents for financial sector, says FM Sitharaman
In November 2023, the Technology Development Board (TDB) and SIDBI signed a memorandum of understanding (MoU) to facilitate easier access to credit for enterprises engaged in the development and commercial application of indigenous or imported technology.
Through this MoU, TDB and SIDBI have entered into a credit alliance, wherein TDB and SIDBI shall refer additional funding needs of mainly MSMEs and other companies.
Earlier in an event, Sudatta Mandal, Deputy Managing Director, SIDBI, said that SIDBI has made continuous efforts for holistic development of the MSME sector, which now contributes to 45 per cent of India's exports and close to 30 per cent of the country's GDP. He added that the financial institution is helping the MSMEs to assess the energy efficiency of business processes, and adopt low-emission pathways.
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