BRIEF, in collaboration with GIZ undertook a study under Micro, Small & Medium Enterprises Financing and Development, to assess the credit gaps in 10 MSME clusters in India. The objective of the study was to map clusters and cluster actors – non-financial gaps and infrastructure gaps (10 clusters in 6 industrial segments), assess the multi-sectorial needs of these clusters (value chain mapping), map the gaps in short, medium and long term (capacity mapping, hard infrastructure) and prepare a growth profile (current status, issues hampering with growth and future potential) for those clusters in consultation with GIZ and SIDBI.

The study indicated that there were huge credit gaps in financial year 2009, which on an average is 50% of the estimated credit requirement. This study further indicated that in order to widen the scope of financial inclusion, avenues have to be found beyond the banking sector to reach out to the MSME sector. In this perspective, GIZ felt there is a research gap in studying and understanding the non-financial gaps for MSME support services. Accordingly, the study was launched to estimate the non-credit gaps in 10 MSME clusters in India. MSMEs need various services at different stages of their development for e.g. during start-up stage, consolidation stage, growth stage, diversification, etc.

BRIEF conducted an analytical study to capture the current status and requirements through secondary and primary research. We developed research guidelines (assessment tools) for key stakeholders (cluster actors) and opinion leaders through close consultations with experts. Data was collected through a mix of quantitative and qualitative methods. At least 30 MSME respondents were identified for each cluster and well-distributed across micro, small and medium enterprises.

The recommendations were given at cluster level considering the various aspects like Marketing Gaps, Government BDS Gaps, Private BDS Gaps, Skill Gaps, Energy Efficiency Gaps, Environment Gaps, ICT Gaps, Quality Gaps and Policy Gaps among others.