New Delhi, June 27 -- Only 14 per cent of India's micro, small and medium enterprises (MSMEs) have access to formal credit despite the country's rapid advances in digital finance, leaving millions of businesses dependent on informal lenders, according to Deloitte's State of Financial Services in India report.

"Only 14% of Micro, Small and Medium Enterprises (MSME) have access to formal credit, leaving the majority of these enterprises (mostly micro-enterprises) dependent on informal, usurious financing," the report said.

It added that these are "not marginal shortfalls -- they are fundamental indicators of the critical need for deepening financial inclusion, and achieving broader economic growth."

According to the Deloitte report, Indi...