Maharashtra's Growth Strategy: NBFCs to Drive MSME Financing
Aman Mittal emphasizes the pivotal role of NBFCs in enhancing MSME financing and managing emerging risks in Maharashtra.
Maharashtra aims for a $1 trillion economy, requiring $1.5 trillion in investments.
Only 2-3 lakh out of 65 lakh MSMEs are insured against risks.
Innovative financial products and data-driven strategies are essential for MSME growth.
In a recent address at the ETBFSI NBFC Leaders’ Retreat 2026, Aman Mittal, Joint CEO of the Maharashtra Institution for Transformation (MITRA), highlighted the crucial role that Non-Banking Financial Companies (NBFCs) can play in advancing Maharashtra's economic growth. He emphasized that innovative financing solutions and risk management strategies are essential for supporting the state's ambition to become a $1 trillion economy.
Maharashtra's economic landscape is characterized by a significant presence of micro, small, and medium enterprises (MSMEs), with approximately 64-65 lakh registered on the Udyam portal. However, Mittal pointed out that only a small fraction, around two to three lakh, are insured against various risks, indicating a substantial gap in risk protection for smaller businesses. This situation underscores the need for enhanced access to credit and financial products tailored to the unique challenges faced by MSMEs.
To address these issues, Mittal noted that high-quality data is critical for lenders to accurately assess business risks and develop appropriate financing solutions. Maharashtra is taking steps to establish State Business Registers to compile comprehensive information on enterprises, which will be accessible to financial institutions. Additionally, the state is working on vulnerability maps to identify climate-related risks, with plans to release new data points by March-April.
Mittal also discussed the potential of parametric insurance as a means to provide financial protection without the need for traditional loss assessments. This innovative approach could be particularly beneficial for businesses affected by climate-related disruptions. Furthermore, he highlighted the importance of risk pooling and innovative debt instruments to support businesses that lack conventional collateral, suggesting that NBFCs could leverage technology and data analytics to enhance their lending capabilities.
Looking ahead, Mittal warned that Maharashtra's transition towards a sustainable economy will require significant investments in new technologies and processes, particularly in light of international regulations like the EU's Carbon Border Adjustment Mechanism. He urged NBFCs to develop specialized financial products that cater to the evolving needs of MSMEs, emphasizing that the future of Maharashtra's economic growth hinges on the ability of financial institutions to innovate and adapt to emerging risks.
