Private and Public Sector Agencies Serving SME Sector in India

Different agencies in India such as SMERA, SME Chamber of India, FICCI, SIDBI etc. belonging to both the public and private sectors, work to assist in the development of the country’s SME sector. Let’s have a look at how these agencies help the SMEs grow.

Background and Function of SMERA

SMERA, which stands for the SME Rating Agency of India Limited is a third party rating agency. The organisation has been set up exclusively for Indian MSME (micro, small and medium enterprises) to assign ratings on the factor of creditworthiness.

SMERA seeks to offer ratings which permit MSME units to increase their bank loans at suitable interest rates. Established in the year 2005 with headquarters in Mumbai, SMERA is registered with SEBI as a Credit Rating Agency and has been accredited by the Reserve Bank of India as an external institution for the assessment of creditworthiness of businesses and rate them for bank loans under the guidelines mentioned by Basel II. This has imparted SMERA the power to grade different financial products in India like bonds, IPO, bank loan instruments and security receipts.

Importance of SME Chamber of India for SMEs

The SME Chamber of India is constantly striving for the growth and development of the SME industry in India by organising different activities. In order to achieve its objectives, the chamber offers necessary guidance and information to both new and existing entrepreneurs for effective management and growth of their businesses. The chamber excels in developing essential strategies which support and help in promotion of the Indian SME sector. This agency works on encouraging SMEs to come up with fresh concepts and ideas for their business promotion.

SIDBI’s Contribution

A venture capital organisation emphasising on Indian SMEs, SIDBI Venture Capital Ltd. offers composite ratings to the SME sector in India. The main function of SIDBI is to offer refinance facilities along with short term lending schemes to Indian industries.

How Does FICCI Assist Indian SMEs?

FICCI (Federation of Indian Chambers of Commerce and Industry) is an association of business organizations in the country. This not-for-profit, non-government organisation draws its membership from the private and public corporate sectors, including MNCs and Indian SMEs.

With the increasing focus of growth in Indian SME sector, various private and public agencies have started coming forth for boosting their development.