Mumbai, May 25 -- Union Finance Minister Nirmala Sitharaman on Monday said the Small Industries Development Bank of India (SIDBI) must move beyond traditional lending and play a bigger role in supporting India's MSME and startup ecosystem.

Addressing SIDBI's 37th Foundation Day celebrations in Mumbai, Sitharaman said the institution should emerge as a "market maker and risk-sharing partner" for small businesses and startups.

"SIDBI's role must now expand from being only a lender to becoming a market maker and risk-sharing partner for India's MSME and startup ecosystem," she said.

The Finance Minister said SIDBI should strengthen its presence in venture capital and debt markets to provide flexible and long-term capital support to early-...