The micro, small and medium enterprises (MSMEs) will play an important role in India's quest to become a ‘Viksit Bharat’ by 2047, NK Singh, former chairperson of Finance Commission, said here on Monday.

Speaking at NDTV's 'Emerging Business- Delhi Chapter Conclave', Singh said if the MSMEs today contribute 30 per cent to the country's GDP, they should take it up to 40 per cent to realise Prime Minister Narendra Modi's vision of "Viksit Bharat" by 2047.

Singh, who served as the chairman of the 15th Finance Commission from 2017 to 2023, also said that women's empowerment in the sector plays a key role.

"The role of the MSMEs sector in India becoming a developed economy is not only a supporting productivity role in terms of improving the capital output ratio and total factor productivity, but becoming a higher proportion of the GDP coming from this sector with an increasing higher proportion of women making an important role to play," he told the gathering.

Asked about a World Bank report which said that the women-led enterprises represent 23 per cent of all MSMEs, but account for 31 per cent of the financing gap, Singh said the report has highlighted that the financing gap is disproportionately higher and needs to be addressed.

The Pradhan Mantri Mudra Yojana (PMMY) has given ample opportunities to countless people to showcase their entrepreneurial skills. PMMY is the flagship programme of PM Modi aimed at funding the unfunded micro enterprises and small businesses.

Since its launch in April 2015, the PMMY has sanctioned over 52 crore loans worth Rs 32.61 lakh crore, fuelling a nationwide entrepreneurial revolution. Business growth is no longer confined to big cities -- it is spreading to small towns and villages, where first-time entrepreneurs are taking charge of their destinies.

The scheme ensures that collateral-free institutional credit up to Rs 20 lakh is provided by Member Lending Institutions (MLIs), i.e., Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).