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RAS question

By FY2028, how many MSMEs are expected to receive financial assistance from SIDBI after the equity infusion?

Correct answer: (C) 102 lakh.

By the end of FY2028, SIDBI is expected to provide financial assistance to about 102 lakh MSMEs after the Rs 5,000 crore equity infusion.

  1. (A)

    76 lakh

  2. (B)

    90 lakh

  3. (C)

    102 lakh

  4. (D)

    120 lakh

Explanation

The Cabinet-approved equity support is meant to strengthen SIDBI's ability to support MSME credit. The PIB release states that Rs 5,000 crore of equity capital will be infused into SIDBI in tranches across FY2025-26, FY2026-27 and FY2027-28. Its stated impact is direct: the number of MSMEs receiving financial assistance from SIDBI is expected to rise from 76.26 lakh at the end of FY2025 to 102 lakh by the end of FY2028. The source also explains why capital matters here: a stronger capital position helps SIDBI maintain healthy CRAR, raise resources at fair interest rates and increase credit flow to Micro, Small and Medium Enterprises at competitive cost.

Why the other options are wrong

  • (A) 76 lakh is close to the FY2025 starting level of 76.26 lakh, not the expected FY2028 figure after the equity infusion.
  • (B) 90 lakh is not the figure stated in the PIB impact estimate, which gives the FY2028 expectation as 102 lakh.
  • (D) 120 lakh overstates the projected reach; the cited release says the expected number is 102 lakh by FY2028.

Concept

This tests Indian Economy coverage of MSME finance and the role of SIDBI as a development finance institution. RAS repeatedly asks such questions because official Cabinet decisions often link institutional capital support with measurable credit-delivery targets.

Source

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