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India’s Micro, Small and Medium Enterprise (MSME) sector is a vital contributor to the country’s growth story.Today, more than six crore MSMEs contribute 8 percent to India’s GDP, 6.11 percent to its total manufacturing output, and24.6 percent in services.1India’s MSMEs are at the heart of India’s growth story. There are more than 6.3 crore MSMEs inthe country generating employment for nearly 111 million Indians and creating nearly 1.3 million jobs every year.Theentrepreneurial growth and development they contribute are not restricted to the urban areas only. Of the 55.8 millionMSMEs, 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.Despite being a major and valued contributor to India’s success, MSMEs face a host of challenges. This includes rawmaterial concerns, inadequacy of skilled resources, inflationary pressures, scarcity of capital and technology barrier.TheState Financial Corporations (SFCs) are State-Level Financial Institutions play a vital role in the development of SMEs inthe respective States in India.