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India and Pakistan Push to Scale MSMEs With New Funds, Rising Finance and Market Access

Governments are deploying funds and market links to turn small firms into bankable, export-ready businesses.

Overview

  • On June 27 World MSME Day, Pakistan highlighted State Bank of Pakistan data showing SME lending rose 46% to Rs853.94 billion and borrower numbers jumped to 312,355, and the government announced a dedicated Rs30 billion SME Development Fund.
  • India’s FY2026-27 budget added supply-side support for small firms, including a ₹10,000 crore SME Growth Fund and a ₹2,000 crore top-up to the Self-Reliant India (SRI) equity fund to boost scaling and liquidity.
  • BSE’s SME platform has helped more than 730 firms raise about ₹16,000 crore and enabled 200+ companies to migrate to the mainboard, creating a visible equity pathway for institutional growth.
  • Digital tools and e‑commerce are widening market access, with platforms and AI tools helping women entrepreneurs and remote sellers reach national and international customers.
  • Local gaps remain: reporting from Assam and provincial statements in Pakistan point to weak infrastructure, collateral-dependent bank lending, certification and skills shortages that could limit how many micro firms actually scale.