FINANCIAL INTERMEDIARIES BOOST MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA

The Micro, Small and Medium Enterprises (MSMEs) sector acts a vital role in the growth of our country. These enterprises are creating employment, export, gross industrial value of output, investment in fixed assets, contributing to GDP, boost manufacture, service and infrastructure sectors .Government performs a major role in various levels like local, state and federal levels in formulating new policies with an aim of empowering, encouraging and facility growth, development and performance of MSMEs. Financial Intermediaries (FIs) are institutions or firms that mediate or stand between lenders and borrowers. FIs focus on assisting the MSMEs to grow through soft loans and other fiscal incentives. The financial intermediaries also have been developed to encourage MSMEs on both theoretical and empirical grounds .Therefore, in this paper; an attempt has been made to study the role and performance of financial intermediaries in promoting MSMEs in India