India’s micro, small, and medium enterprises (MSME) sector is a key driver of economic growth—it generates employment and promotes entrepreneurship, contributing to the country’s economic and social development. The MSME sector has created 111 million jobs and employed 36 million people in manufacturing nationwide, according to data from the 73rd National Sample Survey (NSS) conducted in 2015-16. Importantly, MSMEs are key to generating employment in rural areas and providing opportunities for equitable development. Between 2014 and 2019, the MSME sector grew at a sustained 10 percent and had a 30 percent share of the national GDP. Still, despite its Still, despite its importance, inadequate access to credit is a recurrent issue for India’s MSME sector. The government has introduced several initiatives to provide capital to MSMEs—such as the Emergency Credit Line Guarantee Scheme, launched during the COVID-19 pandemic to bolster the sector.