Asia-pacific Journal of Law, Politics and Administration
| Volume 2, No. 2, 2018, pp 113-118 | ||
| Abstract |
Financing Constraints in India’s MSMEs
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Abstract
For the Indian economic development, MSMEs are important because of their contribution to employment and economic growth. Access to finance is crucial for the development of MSMEs because it is a source of investment. Over 90% of Indian MSMEs is unregistered and around 99% of unregistered MSMEs are micro sized firms. It has been argued that financing constraints are one of the most difficulties facing by Indian MSMEs. Risk averseness of banks and information opaqueness of MSMEs discourage in financing by MSMEs in India.