Industry leaders at an ASSOCHAM summit identified a ₹30 trillion credit gap for micro, small, and medium enterprises. The focus is now on expanding financial services beyond basic banking, with banks urged to fund emerging sectors like green energy and semiconductors to support the goal of a $30 trillion economy by 2047.
The Indian financial sector is pivoting toward a more specialized model, aiming to bridge a substantial credit gap that currently limits growth for small businesses. At the recent ASSOCHAM National Council for Banking and Financial Sector Lending Companies summit, industry experts highlighted that the path to a $30 trillion economy by 2047 requires more than just opening basic bank accounts.
One of the most critical challenges identified is the ₹30 trillion credit shortfall faced by micro, small, and medium enterprises (MSMEs). Manish Jain, an executive director at YES Bank, noted that this gap cannot be filled by traditional lending alone. He argued for the use of advanced digital underwriting and ecosystem-based financing to better assess the creditworthiness of small businesses. Banks are being encouraged to develop deep industry expertise to support sectors such as green hydrogen, space technology, and electric mobility, ensuring these businesses remain competitive in global supply chains.
Atul Kumar Goel, chief executive of the Indian Banks Association, presented a roadmap for reaching the $30 trillion economy goal. He stated that the financial sector must act as a primary catalyst by focusing on digital maturity, productivity, and resilience. A significant part of this transition involves financing new-age, capital-intensive industries like semiconductor manufacturing and renewable energy, which are essential for long-term economic growth.
Maharashtra Governor Jishnu Dev Varma also stressed that financial inclusion must move forward. While digital transaction growth has been a success, the next step involves providing rural households, small entrepreneurs, and women with reliable access to insurance, pension schemes, and affordable credit. He positioned financial institutions as partners in national development, with a mandate to direct capital toward the most productive sectors.
As banks and fintech companies increase their reliance on artificial intelligence, governance and transparency standards are coming under greater focus. Nirmal K. Minda, President of ASSOCHAM, warned that while technology boosts adaptability, it creates a need for robust cybersecurity. Maintaining public trust is considered a non-negotiable requirement for a future-ready financial system.
For investors and market observers, the key monitorable will be how banks adopt these new digital underwriting models to reduce risk while expanding their MSME loan portfolios. The ability of the financial sector to balance technological integration with strict governance will likely dictate the pace at which this credit gap is bridged. Future updates to watch include bank-specific progress in tech-led lending and sector-specific loan growth in emerging areas like electric mobility and green energy.