Apart from providing financial assistance to Micro, Small and Medium Enterprises (MSMEs), Small Industries Development Bank of India undertakes several non-financial initiatives aimed at strengthening the MSME ecosystem in India. These initiatives focus on improving access to information, credit assessment, entrepreneurship development, technology adoption, and policy support for small businesses.
One of SIDBI’s notable initiatives is CriSidEx, India’s first sentiment index for Micro and Small Enterprises (MSEs), developed jointly with CRISIL. CriSidEx measures business sentiment among MSMEs on a scale ranging from 0 to 200, where higher values indicate greater optimism. The index is based on multiple business parameters and helps policymakers, financial institutions, and entrepreneurs understand market trends, production cycles, business confidence, and trade prospects. It serves as an important indicator of the health and outlook of the MSME sector.
SIDBI has also partnered with TransUnion CIBIL to publish MSME Pulse, a quarterly report that tracks credit growth and borrowing patterns in the MSME sector. The report is based on data from millions of MSMEs that have access to formal credit and provides valuable insights into lending trends, credit quality, and financial inclusion within the sector. Such information helps financial institutions and policymakers make informed decisions regarding MSME financing.
To improve access to credit, SIDBI launched the Udyami Mitra Portal, a digital platform designed to connect MSMEs with banks and financial institutions. Through this portal, entrepreneurs can apply for loans online, choose from a large network of bank branches, upload documents electronically, track the status of their applications, and obtain handholding support for financing requirements. The initiative has simplified the loan application process and reduced the need for physical visits to bank branches. SIDBI has further expanded the reach of this portal through collaboration with CSC e-Governance Services India Limited, enabling entrepreneurs in rural and underserved areas to access these services through Common Service Centres (CSCs).
In May 2024, SIDBI signed a Memorandum of Understanding (MoU) with Airbus Helicopters to facilitate financing for civil helicopter purchases in India. This initiative is aimed at supporting the growth of the aviation sector and improving access to finance for businesses seeking helicopter acquisitions.
SIDBI has also established and promoted several specialized institutions to support different aspects of MSME development. These include the SIDBI Foundation for Micro Credit (SFMC), which promotes microfinance and financial inclusion; SIDBI Venture Capital Limited (SVCL), which provides venture capital support to emerging enterprises; and the Micro Units Development and Refinance Agency (MUDRA), which supports micro-enterprises through the “funding the unfunded” initiative.
In addition, SIDBI has promoted Receivables Exchange of India Limited (RXIL) to facilitate faster realization of receivables by MSMEs through trade receivables discounting. It also helped establish SMERA Ratings Limited, now known as Acuite Ratings & Research Limited, to provide credit ratings specifically tailored for MSMEs. Other institutions promoted by SIDBI include India SME Technology Services Limited (ISTSL), which offers technology consultancy and advisory services, and India SME Asset Reconstruction Company Limited (ISARC), which focuses on the resolution of non-performing assets in the MSME sector.
SIDBI also acts as a nodal agency for several flagship initiatives of the Government of India, including Make in India and Startup India. Through these programs, the institution supports entrepreneurship, innovation, employment generation, and the overall development of the MSME sector, thereby contributing significantly to India’s economic growth and industrial development.