MSMEs raise concerns over low credit flow, NPA norms

Experts say funding hurdles may stall growth

- FE BUREAU

IN A PRE-BUDGET meeting with Finance Minister Nirmala Sitharaman on Wednesday, micro,smalland medium enterprises (MSMESs) flagged issues related to credit flow,temporary mismatch in cash flows leading to classification of loans as NPA and Quality Control Orders (QCOs) hurting MSMEs, sources said. Sitharaman chaired the third pre-Budget consultation with the stakeholders from MSMEs in connection with the forthcoming Union Budget 2026-27.

MSMEs have raised concerns over persistent challenges in credit flow, loan classification norms, and new regulatory measures that are straining theiroperations.Industry representatives have urged the government to take corrective steps to address liquidity issues and policy hurdles impacting the sector’s growth.