Context: Registering Micro, Small, and Medium Enterprises (MSMEs) under “Udyam” could help them access formal credit channels. But the costs of formalization and compliance are high and onerous.
Steps taken to formalize MSME’s
Problems related to the formalization of MSME in India
Conclusion: Enabling strategies such as Priority Sector Lending (PSL) could provide a fillip to priority sectors, including MSMEs, which require increased formal financing.