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During the SME Champion Awards 2024, Ajay Sharma, Managing Director and Head of Commercial Banking at HSBC India, emphasised the critical role SMEs play in driving economic growth. “The way HSBC looks at the SME segment, it’s a segment that we focus on. From an Indian economic perspective, 30 to 40% of economic growth generally gets generated by the SME segment,” Sharma remarked, setting the tone for an insightful discussion on challenges and opportunities.
Overcoming Challenges in SME Financing
When asked about the common obstacles SMEs face when approaching financial institutions, Ajay Sharma highlighted three key issues: access to financing, finding customers, and navigating available support schemes. He noted, “Access to financing is a common issue across the world and in India. The single biggest thing SMEs ask from us is not financing but, ‘Can you help us find more customers?’ And very often, we can.”
He further emphasised the need for SMEs to adopt digital tools and navigate international markets effectively to scale operations. HSBC is addressing these hurdles through tools like HSBC Net, which enables seamless cross-border operations and streamlines financial processes. “The same app reflects operations in Singapore, Dubai, or Hong Kong,” Ajay Sharma explained, showcasing how digital innovation is transforming SME efficiency and global reach.
India Stack: Bridging Financial Gaps
Ajay Sharma praised India Stack for its role in bridging financial gaps, integrating Aadhaar and GST data to provide deeper financial insights. “You don’t get this quality of data consistently anywhere else in the world,” he said, highlighting how transparent compliance and credit behaviour data empower SMEs to access credit more efficiently. He also noted how India Stack allows banks to make informed credit decisions, ultimately supporting SMEs in achieving sustainable growth.
As the SME Champion Awards 2024 celebrated the resilience and innovation of India’s SMEs, they also set the stage for a brighter future. With HSBC’s continued support, SMEs are better equipped to embrace digital transformation, navigate global markets, and drive economic growth. “When we talk to SMEs, it’s about enabling them to find new opportunities, be it clients or markets,” Sharma concluded.
The 2025 SME Champion Awards promises to build on this legacy, continuing to recognise excellence and inspire the next generation of SME leaders. Stay tuned for updates and opportunities to join this transformative journey, celebrating and empowering India’s most impactful SMEs.
For more insights, watch the full conversation here.
This is a partnered post.
