Telangana among top five states that aided MSME sector

HYDERABAD: Telangana is among the top five states in the country for providing relief to the micro, small and medium enterprices (MSME) sector from becoming Non-Performing Assets (NPA) as a result of the Covid-19-induced economic slowdown.
Various schemes were availed by nearly 4.9% of the units in the state. The central government has released loans under Emergency Credit Line Guarantee Scheme (ECLGS).
Amongst states, Gujarat with 12.4% has been the biggest beneficiary, followed by Maharashtra (11.4), Tamil Nadu (10.3), Uttar Pradesh (8.0), Telangana (5.9), West Bengal (5.9), Andhra Pradesh (5. 3), Rajasthan (5.0), Karnataka (5.0) and Kerala (4.4).
According to a recent report from the State Bank of India (SBI), in financial year 2021, the central government has disbursed loans worth 9.5 lakh crore to the MSME sector, which is significantly higher than preceding years of Rs 6.8 lakh crore in FY 2020, owing primarily to the ECLGS.
Telangana is among the top five states in terms of private company ownership among MSMEs.
The micro and small enterprises’ loans in banks share around 80% of the total MSME loan portfolio. The trading sector has benefitted the most, followed by food processing, textiles and commercial real estate. The top ten sectors accounted for 75% of the outstanding amount saved for becoming NPAs.
Hyderabad is the major growth engine and hub of MSME. Telangana is estimated to have 2.6 million MSMEs, with 56% of them located in rural areas and 44% in urban parts. Since the formation of the state, 63.388 million registered MSME units have begun operations, with an investment of 11,487 crore.