GeM-SAHAY: Providing marginalised access to frictionless working capital

The Government eMarketplace (GeM) was integrated with SAHAY to launch the GeM-SAHAY app in May 2021 to address the credit availability challenges faced by sole proprietors on GeM

Even though MSMEs account for about 45% of India’s total manufacturing output and contribute about 30% to its GDP, access to working capital remains a persistent challenge for this new engine of growth for the Indian economy. This has now been exacerbated by the elevated working capital pressures largely due to an increase in receivables driven by higher commodity prices and longer than usual payment and cash cycles. The implementation of structural reforms like Goods and Services Tax (GST) and Jan Dhan, Aadhaar, Mobile (JAM) trinity has enabled the integration of many informal units with the mainstream in recent years