India’s small businesses chase a new dawn amid reforms and financing push
Finance Minister Nirmala Sitharaman in May asked lenders to go beyond the template when serving micro, small and medium enterprises (MSMEs). Lenders were urged to think in terms of specific business verticals’ needs and adopt a cashflow-based approach. With the MSME (Amendment) Act, 2026, the Reserve Bank of India (RBI) issuing co-lending directions (effective January 2026), and the Trade Receivables Discounting System (TReDS), lenders of all hues are now better poised to deliver on Sitharaman’s exhortation.