The Industrial Policy Resolution of 1948 and the Industries (Development and Regulation) Act, 1951 were the initial factors that played a key role in the development of cottage and small scale industries (SSIs) in India. In 2006, the government enacted the Micro, Small and Medium Enterprises Development Act and changed the concept of SSIs. Since then, the government has established several legal and regulatory frameworks to influence the growth of MSMEs and abolish red tape that hindered their operations. MSME loan, offered by both public and private financial institutions, formed part of the development process and proved critical. What is...