New Delhi, April 7 -- A few months ago, I met a textile trader from Surat. His sales were rising, his order book was full, and yet he was constantly scrambling for cash. He did not know why. A closer look revealed the problem: he was extending 90-day credit to buyers while paying suppliers in 30 days, mixing personal and business accounts, and had skipped goods and services tax (GST) filings for two quarters. His business was not failing, it was leaking. Slowly, steadily, and entirely avoidably.

This is not unusual. India has more than 63 million micro, small and medium enterprises (MSMEs), contributing about 30% of GDP and employing over 110 million people. Yet access to finance remains a persistent constraint, with a credit gap estimat...