A recent survey by IFC and Mckinsey (2010) suggests that 80 per cent of these MSMEs are excluded from the financial markets. The state of MSMEs in the country underscores the importance of this conference. Suffice it to say that between 2003 and 2012, commercial bank loans to small scale enterprises dropped at an exponential rate.
Analysis of the annual trend in the share of commercial bank credit to small-scale industries indicates a decline from about 7.5 per cent in 2003 to less than 1% in 2006 and a further decline in 2012 to 0.14 per cent. 5. A number of reasons have been proffered for this financing gap.