States » SouthPosted at: Sep 17 2026 9:12PM


Stakeholders call for stronger credit support for MSMEs

Thiruvananthapuram, Sep 17 (UNI): Kerala’s MSME sector needs stronger access to credit, greater collaboration among government, industry and academia and a sharper focus on sustainable and export-oriented industries, stakeholders said at a round-table conference on the ‘Kerala MSME Growth Scheme’ held as part of the ‘Reimagining Keralam’ event here today.
The participants called for a stronger credit-guarantee mechanism to encourage banks to finance startups, young entrepreneurs and innovative MSMEs, and suggested considering a ₹100-crore state-level credit-guarantee window that could leverage its corpus multiple times through institutional lending.
The session, held on the second day of the three-day event, also discussed the potential of seafood, aquaculture, plywood and rubber sectors, while emphasising the need to balance industrial expansion with the protection of Kerala’s biodiversity, including the Western Ghats and its extensive network of water bodies.
Director of Industries and Commerce Snehil Kumar Singh, Director of General Education Arun K Vijayan and Partner, Grant Thornton Bharat, Prof V Padmanand, led the discussions.
Kerala’s economy remains predominantly service-led, with the sector accounting for around 60-65 per cent of economic activity, while manufacturing contributes about 24 per cent and agriculture around 14 per cent, according to figures cited during the discussions.
The stakeholders pointed out that Kerala has considerable potential to expand seafood exports by scaling up aquaculture and strengthening links with global markets. The potential of rubber replantation in strengthening the state’s raw-material base and supporting long-term economic growth was also highlighted.
Educated unemployment, dependence on food imports and the state’s high reliance on overseas remittances were identified as major challenges.
Difficulties faced by startups and new enterprises in securing bank finance also came up for discussion. Participants cited credit-guarantee models in other states, including arrangements providing up to 95 per cent guarantee coverage through a combination of central and state support, as possible models for Kerala.
Existing national mechanisms such as the Credit Guarantee Scheme for Startups and the Credit Guarantee Fund Scheme for Skill Development Loans were also cited as possible models for developing a Kerala-specific mechanism.
The stakeholders also stressed the need to strengthen technology and intellectual-property support for MSMEs. Existing initiatives of the Ministry of MSME to facilitate commercialisation of intellectual property, including patents and other registered IP assets, could be leveraged more effectively, they said.
Technology Transfer Facilitation Centres could also play a greater role in helping MSMEs take innovations from development to commercialisation, the participants said.
Rather than creating parallel institutions and schemes, Kerala should strengthen and connect existing technology business incubators, incubation centres and technology-transfer infrastructure, they suggested.
Greater collaboration among academia, industry, professional bodies, chambers of commerce and government agencies could help create a stronger pipeline from skills and innovation to enterprise creation and employment, the participants said.
The broader message from the discussions was that Kerala’s economic growth needs to become more employment-oriented and demand-driven. The participants stressed the need to understand domestic and global market demand, anticipate risks and equip potential entrepreneurs with the skills, knowledge, finance and institutional support needed to build sustainable businesses.
UNI DS
Tags: #Stakeholders call for stronger credit support for MSMEs
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