Whalesbook
India's Micro, Small, and Medium Enterprises (MSMEs) are grappling with Rs 7.34 lakh crore in delayed payments, with public sector undertakings accounting for nearly 40% of this amount. Despite a reduction from previous years, this massive sum significantly constrains working capital for the country's 6.4 crore MSMEs. The government is responding by increasing credit targets for banks and NBFCs, aiming for Rs 7 lakh crore by 2026-27. However, challenges like non-transparent procurement processes and stringent tender requirements continue to hinder MSME growth and access to finance.