authors
Chakravarti Suman Bharati

abstract
Small and Medium Enterprises (SMEs) form the backbone of India’s economy, contributing significantly to employment, innovation, and GDP. Despite their vital role, SMEs often face significant barriers in accessing adequate and affordable financing. This paper explores the financial strategies employed by Indian SMEs and evaluates the policy frameworks designed to address their unique challenges. The analysis highlights the critical role of formal financial institutions, government schemes, and alternative funding sources such as venture capital and peer-to-peer lending. However, persistent challenges such as stringent credit requirements, high-interest rates, and limited financial literacy hinder SME growth and competitiveness.