SIDBI, in November 2024, signed a MoU with which of the following for strengthening the collaboration to support MSMEs through capacity building, credit facilities, and knowledge-sharing?

The correct answer is Peenya Industries Association.

Key Points

• SIDBI (Small Industries Development Bank of India) signed a MoU with Peenya Industries Association in November 2024.
• The collaboration aims to support Micro, Small, and Medium Enterprises (MSMEs) through capacity building, credit facilities, and knowledge-sharing initiatives.
• Peenya Industries Association is one of the largest industrial associations in India, representing the interests of MSMEs in the Peenya Industrial Area in Bengaluru.
• This partnership will focus on enhancing the competitiveness and growth of MSMEs by providing them with the necessary resources and support.
• The MoU is part of SIDBI's ongoing efforts to strengthen the MSME ecosystem in India, which is a critical sector for economic development and job creation.

Additional Information

• Small Industries Development Bank of India (SIDBI)
  • SIDBI was established on April 2, 1990, under an Act of the Indian Parliament.
  • It is the principal financial institution for the promotion, financing, and development of MSMEs in India.
  • SIDBI provides various financial products and services to MSMEs, including term loans, working capital loans, and equity support.
  • SIDBI also engages in policy advocacy and development initiatives to create a conducive environment for MSMEs.
• Micro, Small, and Medium Enterprises (MSMEs)
  • MSMEs are classified based on their investment in plant and machinery or equipment and annual turnover.
  • MSMEs play a crucial role in the Indian economy, contributing significantly to GDP, exports, and employment.
  • They are often considered the backbone of the Indian economy due to their extensive presence across sectors and geographies.
  • The Indian government has implemented various schemes and policies to support the growth and development of MSMEs.
• Peenya Industrial Area
  • Located in Bengaluru, Karnataka, Peenya Industrial Area is one of the oldest and largest industrial areas in India.
  • It houses a diverse range of industries, including manufacturing, engineering, electronics, and information technology.
  • Peenya Industries Association represents the interests of businesses operating in this industrial area.
  • The association works towards addressing the challenges faced by industries and facilitating their growth and development.
• Capacity Building
  • Capacity building refers to the process of developing and strengthening the skills, abilities, and resources of organizations and individuals.
  • It is essential for enhancing the efficiency, effectiveness, and sustainability of organizations, particularly in the MSME sector.
  • Capacity building can include training programs, workshops, technical assistance, and mentoring.
  • It aims to improve the overall performance and competitiveness of MSMEs, enabling them to adapt to changing market conditions and technological advancements.