World Bank approved $500 mn program to help boost India’s MSME sector

The World Bank recently approved a USD 500 million program to support India’s nationwide initiative to revitalise the MSME sector, which has been heavily impacted by the COVID-19 crisis.

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The USD 500 million Raising and Accelerating Micro, Small and Medium Enterprise (MSME) Performance (RAMP) Program is the World Bank’s second intervention in this sector.

The first being the USD 750 million MSME Emergency Response Program, approved in July 2020 to address the immediate liquidity and credit needs of millions of viable MSMEs severely impacted by the ongoing COVID-19 pandemic.

The programme targets improvements in the performance of 5.5 lakh MSMEs and is expected to mobilise financing of USD 15.5 billion, as part of the government’s USD 3.4 billion MSME Competitiveness – A Post-COVID Resilience and Recovery Programme (MCRRP).

The RAMP program will provide better access to finance and working capital for MSMEs by strengthening the receivable financing markets.