MSME Debt Soars to 46 Lakh Crore; Loan Quality Improves Amidst Economic Growth

• India's small industries now carry an outstanding debt of 46 lakh crore rupees, marking a 16% surge by September 30.
• The number of active MSME loan accounts increased by 11.8% to 7.3 crore, supported by government policies and schemes.
• Portfolio quality improved, with loans delayed by 91-180 days decreasing to 1.4% by September 2025 from 1.7% in September 2023.
• Sole proprietorships account for 80% of total debt and 90% of borrowers, with working capital loans making up 57% of outstanding debt.
• MSMEs are the economy's backbone, employing 28-30 crore people, contributing over 30% to GDP, and 46% to exports.

Why It Matters: MSME debt surged to 46 lakh crore, yet loan quality improved, highlighting the sector's economic vitality.