Andhra Pradesh State Financial Corporation (APSFC), a State-Level Development Financial Institution (DFI), was established in 1956 for promoting Small and Medium Enterprises (SMEs) in the State of Andhra Pradesh under the provisions of the State Financial Corporation' (SFC) Act,1951, with a prime focus on infusing entrepreneurial spirit among entrepreneurial class. It also provides term loans, working capital term-loans, and special-seed capital assistance to SMEs thereby contributing Balanced Regional Development. Today, more than six crore MSMEs contribute 8 percent to India’s GDP, 6.11 percent to its total manufacturing output, and 24.6 percent in services.1India’s MSMEs are at the heart of India’s growth story. There are more than 6.3 crore MSMEs in the country generating employment for nearly 111 million Indians and creating nearly 1.3 million jobs every year. The entrepreneurial growth and development they contribute are not restricted to the urban areas only. Of the 55.8 million MSMEs, 59 per cent are based in rural India. The segment contributes close to 45 per cent to India’s manufacturing output, over 40 percent to our exports, and about 8 percent to our GDP. However, how so far this credit development is able to contribute to the development of micro small and medium industries needs an extensive examination. The present paper is concerned to analyze some of the direct effects of credit support given by APSFC to micro small and medium enterprises development in Andhra Pradesh over a period of time from 2007-08 to 2018-19.
MSMEs, APSFC, Operational performance, Flow of credit
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