Just saw this news from EEPC India and honestly,it's point that needed to be made for long time . They are asking government for a separate rating system for MSMEs.
Right now,the situation is actually quite unfair . When a small or medium company goes for a rating,they are often compared with industry giants like JSW and Tata Steel . How can a small workshop compete with massive steel plant on paper ah? It's just not a fair comparison .
So the Engineering Export Promotion Council has officially said in a statement on June 3,2026 that this needs to change . They want a system that reflects the reality of these smaller businesses,so they can get the recognition they deserve.
And tbh,this makes complete sense.
Pankaj Chadha,who is the Chairman of EEPC India,explained it very clearly . He said this old system gives many MSMEs sub-investment grade ratings . Because of this,they struggle to get loans from banks or are forced to offer much higher collateral. This puts them at a huge disadvantage from day one.
Few things standing out here:
- Proposed MSME rating system would ensure fair comparison among similar-sized companies.
- Better ratings could lead to better loan conditions and help them get funding .
- This sector is huge,contributing nearly one-third of manufacturing output and 45% of merchandise exports.
The suggestion is that the Reserve Bank of India should develop this new system,which is specifically designed for MSME parameters . whole point is to level the playing field so they are benchmarked against their peers,not against corporate giants .
And let's be clear,the MSME sector is the backbone of our economy . Even with global issues,credit exposure to sector went up to about ₹46 lakh crore by April 2026 . A report from CRIF High Mark showed a 12.8% increase from last year,thanks to good domestic demand and policy support.
This shows they are resilient and growing,they just need a fair chance .
It's a really good idea and could help so many businesses compete internationally . But you know how these things are,a good suggestion is one thing,but getting it implemented is another story entirely…
