The World Bank has provided significant financial
support for the development of Micro, Small, and Medium Enterprises (MSMEs)
in India through various programs.
Here's a breakdown of the funding provided:
MSME Emergency Response Program
In July 2020, the World Bank approved a $750
million MSME Emergency Response program to support the sector, which was
severely impacted by the COVID-19 crisis. This program aimed to address
the immediate liquidity and credit needs of approximately 1.5 million viable
MSMEs. The loan had a maturity of 19 years, including a 5-year grace period.
Raising and Accelerating MSME Performance (RAMP)
Program
In June 2020, the World Bank had approved the same $750
million MSME Emergency Response program.
MSME Growth, Innovation and Inclusive Finance
Project
In June 2021, the World Bank approved a $500 million
program called the Raising and Accelerating Micro, Small and Medium Enterprise
(MSME) Performance (RAMP) Program. This program aimed to improve the
performance of 555,000 MSMEs and was part of the government's $3.4 billion MSME
Competitiveness – A Post-COVID Resilience and Recovery Programme (MCRRP).
Considering the above, the World Bank has
provided a total of at least $1.75 billion in direct funding for MSME
development in India through the programs mentioned above. This does not
include the additional financing mobilized through various initiatives.
Total Funding
The World Bank also supported the MSME sector
through the MSME Growth, Innovation and Inclusive Finance Project, providing a
$500 million credit line to the Small Industry Development Bank of India
(SIDBI).
Therefore, the World Bank has provided at least $1.75 billion for MSME development in India through the MSME Emergency Response Program, the RAMP Program, and the MSME Growth, Innovation and Inclusive Finance Project.