Mumbai: Growth in credit to India’s micro, small and medium enterprises (MSMEs) has moderated, with early signs of stress emerging among micro businesses and some manufacturing-linked sectors amid global uncertainty, according to a report by CRIF High Mark. The MSME exposure portfolio stood at around Rs 46 lakh crore in April 2026, up 12.8 per cent year-on-year. However, growth slowed sharply, with portfolio outstanding rising only 3.1 per cent between December 2025 and April 2026, compared with 9.7 per cent in the corresponding period a year earlier. Active loans declined 3.5 per cent during the period. The report said micro enterprises, which account for nearly 86 per cent of active MSME loans, showed relatively higher vulnerability. Early-stage delinquency in the 31-90 day bucket stood at 2.7 per cent, compared with 1.5 per cent for small businesses and 0.8 per cent for medium enterprises.

Manufacturing and trade, which account for nearly 60 per cent of the MSME portfolio, also witnessed slower credit momentum. Manufacturing credit growth eased to 4.3 per cent between December 2025 and March 2026 from 10.4 per cent a year earlier, and contracted 3.1 per cent between March and April.

Supply chain-linked sectors such as shipping and transport, food processing, and auto and ancillaries recorded declines in portfolio outstanding during the period. Early-stage stress in manufacturing also edged up, with PAR 31-90 rising to 1.8 per cent in April. The report noted that lending momentum moderated across lender categories, particularly PSU banks and NBFCs. Despite the slowdown, overall portfolio quality remained stable, with PAR 90+ improving to 7.8 per cent from 8.1 per cent a year ago.

-PTI