Podcast
MSMEs Are India’s Real Growth Engine: Pankaj Gupta on Credit, Digital India and Nation Building
In an economy filled with conversations around retail credit, start-ups, MSME lending and trends like Buy Now, Pay Later, it is easy to overlook the segment that quietly drives India’s structural growth. Speaking on Simple Hai! with Co-founder and Editor-in-Chief Vivek Law, Pankaj Gupta, Managing Director and CEO of Godrej Finance, laid out a comprehensive view of how MSMEs have evolved over the past decade, the challenges they continue to face, and the structural shifts required to unlock their full potential.
MSMEs: The Real Face of India
Gupta described MSMEs as the “real face of India,” underscoring their role not merely as economic contributors but as employment generators and grassroots wealth creators. Over the past ten years, he noted, India’s economic landscape has undergone a fundamental transformation driven by Digital India, a thriving startup ecosystem and improved regulatory infrastructure.
Small businesses that once operated informally are increasingly embracing structured processes, compliance frameworks and global ambitions. Yet, despite this transformation, systemic challenges persist.
The Persistent Credit Gap
When Law questioned if access to capital has improved, Gupta highlighted a significant credit gap between MSME demand and formal supply. Capital exists in the system, but structured finance does not always reach viable enterprises, particularly in smaller towns and semi-urban markets.
Godrej Finance, now in its fifth year, positions itself within a broader “nation-building” philosophy aligned with the values of Godrej Industries across its chemicals, consumer and agro-vet businesses. The firm’s long-term strategy involves going deeper into India’s hinterland to address this financing mismatch.
The credit gap, Gupta emphasised, is not merely a funding issue but a structural inefficiency that constrains growth at the grassroots level.
Beyond Lending: The Godrej Nirmaan Approach
To address this gap more holistically, Godrej Finance launched Godrej Nirmaan, a business solutions platform designed to support MSMEs beyond traditional lending.
The initiative offers free consultation in logistics and transportation and facilitates access to Amazon Global Selling, enabling small enterprises to integrate into broader supply chains. The strategy signals a shift from transactional lending to partnership-based growth.
Gupta cited cases where enterprises scaled from turnovers of around ten crore to more than five hundred crore through structured financial support and advisory guidance. Such outcomes, he suggested, demonstrate that access to capital must be complemented by capability building.
The Knowledge Deficit
Answering to Law’s question on challenges for MSMEs, Gupta said, a recurring theme in the discussion was the knowledge gap among MSME operators. Many entrepreneurs lack clarity on documentation requirements, collateral norms and the importance of transparent tax filing. This informational deficit restricts access to formal finance.
He also pointed to disparities between metropolitan centres and smaller towns in terms of credit penetration and financial literacy. Bridging this divide requires coordinated efforts across the value chain, including lenders, advisors and entrepreneurs.
Professionalisation and succession planning, he added, are essential for sustainable scale. By integrating professional management and involving younger generations, MSMEs could potentially expand 10 to 50 times their current size.
Digital India and the JAM Infrastructure
India’s digital transformation has significantly altered the lending landscape. Gupta credited the JAM trinity, Jan Dhan accounts, Aadhaar identity infrastructure and mobile connectivity, along with the Reserve Bank of India’s regulatory framework, for creating a globally competitive financial ecosystem.
At Godrej Finance, artificial intelligence and machine learning are used to assess borrowers based on digital footprints and cash flow patterns rather than relying solely on physical collateral. This data-driven approach expands access to credit for businesses without traditional assets.
Technology also enhances operational efficiency. AI systems monitor thousands of customer service interactions to maintain service quality and compliance standards.
Flexible Products for Real-World Cash Flows
Recognising the cyclical nature of MSME cash flows, Godrej Finance introduced flexible products such as Design Your EMI and Flexi Funds.
Flexi Funds operate similarly to an overdraft facility, allowing borrowers to pay only interest during high-expense periods such as festive seasons. Design Your EMI enables customised repayment structures aligned with revenue cycles. Meanwhile, Biz Rewards incentivises responsible credit behaviour through reward mechanisms for timely repayments.
On the broader BNPL trend, Gupta advocated caution. Credit, he stressed, must serve genuine needs rather than lifestyle indulgence. Responsible borrowing, supported by responsible lending, is critical to financial stability.
A Career Shaped by Learning
Gupta’s professional journey reflects both strategic foresight and personal resilience. After early roles at Asian Paints and AkzoNobel, he transitioned into private banking in 2004, identifying the sector’s growth potential during a formative phase in India’s financial services evolution.
His personal mantra, Learn More, Earn More, Grow More and Celebrate More, encapsulates his belief that continuous learning builds credibility, which in turn fuels professional and personal growth.
Lessons from Early Hardship
Long before corporate boardrooms, Gupta worked at a PCO shop from the age of fifteen to support his family while pursuing his education. Earning 450 rupees a month, he reconciled daily accounts and absorbed shortfalls from his own salary.
Those formative years instilled discipline, financial prudence and an early understanding of profit and loss statements. He credits his grandfather, who learned to read and write Hindi at 82, as a lifelong inspiration for continuous learning.
Leadership, Health and Balance
Even as a senior executive, Gupta continued formal learning at institutions such as IIM Calcutta and the Wharton School. However, an earlier health crisis triggered by overwork served as a turning point.
Today, he prioritises balance through yoga, daily walks and simple home-cooked meals. Originally from Pathankot, Punjab, India, he values family time and remains grounded in the principles of honesty and hard work instilled by his father.
What’s Ahead for MSMEs?
The conversation presented a layered assessment of India’s MSME ecosystem. While policy reforms and digital infrastructure have strengthened access to finance, structural challenges remain in education, transparency and professional management.
Through technology-led lending, flexible products and advisory support, Godrej Finance aims to narrow the credit gap and foster sustainable enterprise growth.
For Gupta, MSME development is not merely a commercial opportunity but a national imperative. Empowering small businesses with capital, capability and confidence, he argued, is fundamental to India’s economic future.
Podcast
Gold Loans, MSME Credit and Digital Lending: Rakesh Singh on India’s Changing Borrowing Habits
India’s lending landscape is evolving as technology makes credit more accessible and businesses look for faster ways to raise funds. From households using gold as collateral to small businesses seeking formal credit, borrowing is becoming an important part of how individuals and enterprises manage their financial needs.
In a conversation with Vivek Law on The Simple Hai! Show, Rakesh Singh, Executive Director and CEO (NBFC) at Aditya Birla Capital, discussed the growth of gold loans, the credit gap faced by micro, small and medium enterprises (MSMEs), the role of digital platforms in lending, and why responsible borrowing must remain a priority.
Gold Loans: Putting Household Savings to Productive Use
Gold has traditionally been an important form of savings for Indian households. Singh noted that Indian families collectively hold an estimated $5 trillion worth of gold, presenting a significant opportunity for the gold loan market.
According to Singh, the gold loan industry has grown considerably over the past two to three years, partly because rising gold prices have increased the value of the collateral borrowers can offer. He cited an industry size of around ₹19 lakh crore, with NBFCs accounting for approximately ₹4 lakh crore and banks making up the remainder.
Gold loans can help people access funds without selling family jewellery. Singh explained that borrowers often use these loans to invest in their businesses or pay for their children’s education, making them a source of funds for specific financial needs rather than everyday consumption.
He also highlighted the potential in semi-urban and rural areas, as well as Tier 3 and Tier 4 markets, where access to such lending products can expand further.
Trust Is Key to the Gold Loan Business
Borrowing against gold involves more than a financial transaction. For many families, jewellery carries emotional and generational value, making trust an essential part of the process.
Singh said established brands can help customers feel more confident about pledging their gold. Transparency, responsible handling of jewellery and a customer-first approach are important to building that confidence.
He also pointed to a geographical shift in the market. While gold lending was previously concentrated in southern states, Singh said growth is increasingly visible in northern, eastern and central India, including markets such as Delhi-NCR, Uttar Pradesh and Rajasthan.
For Aditya Birla Capital, entering this segment is an opportunity to expand its lending presence across the country while focusing on customer trust and responsible growth.
MSMEs Continue to Face a Credit Gap
Access to formal credit remains a challenge for many small businesses. Singh observed that some MSMEs continue to borrow from friends, family or local sources, sometimes at significantly higher rates, because they cannot easily access suitable formal financing.
He said banks, NBFCs and fintech companies each have a role to play in addressing this gap. Rather than simply competing with one another, these institutions need to reach different customer segments and offer products suited to their requirements.
Speed is another important factor. For a small business, delays in accessing funds can affect day-to-day operations and growth plans. Lenders therefore need to combine appropriate credit assessment with efficient processes.
Singh also shared that approximately 57–58% of Aditya Birla Capital’s loan book, which he referred to as around ₹1.70 lakh crore during the discussion, was directed towards MSMEs.
How Digital Platforms Are Changing Lending
Digital infrastructure is making it easier for lenders to assess small businesses that may previously have had limited access to formal credit.
Singh highlighted the role of digital payments, Aadhaar-based verification, PAN linkages, GST records and credit bureau information in helping lenders understand customers and their financial activity. As more businesses use digital payment systems, lenders can gain a clearer picture of their transactions and banking behaviour.
Aditya Birla Capital developed its Udyog Plus digital platform to serve MSMEs. Singh said the platform had close to 2.4 million registered businesses at the time of the conversation.
Through digital processes, some smaller loans can be assessed, approved and disbursed within minutes. Larger or more complex applications may still require intervention from branches and credit managers.
Digital platforms can also help businesses access services beyond financing, including support related to accounting and human resources.
Digital Lending Must Be Matched With Responsible Borrowing
Technology has made it easier for customers to access credit, including through digital platforms and financing options offered during online purchases. However, Singh cautioned that easier access to loans also brings risks.
When customers take multiple loans from different lenders, their overall debt burden can rise. Singh stressed that lenders need to monitor a borrower’s leverage not just when approving a loan, but also after the money has been disbursed.
For borrowers, understanding repayment capacity is equally important. People should assess how much they can repay, when their income is likely to arrive and whether the repayment schedule suits their financial circumstances. This can be particularly important for those with irregular or seasonal earnings.
Singh also emphasised the importance of awareness around credit scores and repayment discipline. Delayed payments can affect a borrower’s credit record and future access to loans.
The Future of Lending Depends on Access and Awareness
India’s growing economy, expanding digital infrastructure and changing borrowing needs are creating opportunities for lenders. Gold loans can help households unlock funds against an existing asset, while better access to formal credit can support small businesses.
But greater access alone is not enough. As Singh explained, lenders must understand the customer segments they serve, manage risks carefully and ensure that credit reaches borrowers whose needs and repayment capacity align with the product.
For borrowers, the message is equally clear: a loan should serve a financial purpose, and taking one should always involve a clear understanding of its cost and repayment obligations.
Podcast
Simple Hai! @ 100: Celebrating a Milestone in Making Finance Simple
From financial awareness to financial confidence, Simple Hai! marks 100 episodes with a celebration of conversations, learning and the people behind the journey. A hundred episodes is more than a number. For Simple Hai!, it represents years of conversations aimed at making money easier to understand. The milestone was celebrated with the Simple Hai! @ 100 event, bringing together the people who have shaped, supported and powered the show. The celebration reflected on the journey of building a financial education platform around one simple idea: finance does not have to feel complicated.
From Awareness To Confidence
Over its journey, Simple Hai! has explored subjects ranging from investing and wealth creation to retirement planning and everyday money decisions.
The show’s conversations have also reflected how India’s financial landscape has changed.
Mutual funds, investing and personal finance have become more accessible to younger audiences. Digital platforms have further changed how people learn about money.
The show has reached audiences beyond India’s major metros, with viewers across more than 15 countries.
It has also crossed 38 million impressions and nearly 5 million views, reflecting the growing demand for accessible financial education.
The People Behind Simple Hai!
The celebration also recognised the team working behind the camera.
Co-founders Aparna Joshi, Harish Patil and Deepak Karna joined Law during the event, highlighting the collaborative effort behind the platform.
The wider OneNative Studio team was also brought on stage as part of the celebration.
That moment reinforced an important part of the show’s journey.
A finance platform may have a host at the centre, but building 100 episodes requires researchers, producers, editors, designers and everyone working behind the scenes.
A Conversation With Ashishkumar Chauhan
Ashishkumar Chauhan, MD and CEO of the National Stock Exchange, also joined the celebrations through a conversation and message recognising the milestone.
He highlighted the role of financial media in making investment conversations more accessible.
The discussion also looked at how Indian investors have changed over the years.
Law recalled a time when mutual funds were far less familiar to ordinary investors. Today, financial products and investment information are significantly more accessible.
The challenge has consequently shifted from access to understanding.
The Philosophy Behind The Show
One recurring idea from the celebration was the importance of knowledge.
A story from India’s financial markets captured that philosophy particularly well.
Veteran brokers once suggested that while people may worship Lakshmi, the goddess of wealth, they should remember Saraswati, the goddess of knowledge, every day.
For Simple Hai!, that idea fits the journey.
Financial confidence cannot come only from having access to products. It also requires knowledge, discipline and the confidence to ask questions.
What’s Next For Simple Hai!?
Reaching 100 episodes is being treated as a milestone rather than a finish line.
The platform plans to explore artificial intelligence and other technologies to make financial education more accessible.
The newly launched Simple Hai! website will also bring together its podcasts and financial education content.
As the show enters its next phase, its central promise remains unchanged.
Make finance simpler. Make financial conversations more accessible. And help more Indians become confident with their money.
For Simple Hai!, 100 episodes are therefore less about looking back and more about asking what comes next.
Podcast
Digital Gold Can Unlock India’s $5 Trillion Opportunity, Mahendra Luniya
Gold has long been India’s preferred store of wealth. It is bought during festivals, gifted at weddings and passed down through generations. But while Indian households continue to accumulate the precious metal, much of it remains locked away in lockers, generating little economic value.
According to Mahendra Luniya, Founder Chairman, Vighnaharta Gold Ltd., this vast stockpile of household gold represents one of India’s biggest untapped economic opportunities. Speaking on the Simple Hai! podcast hosted by veteran business journalist Vivek Law, Luniya argued that digitising gold ownership and bringing idle gold into the formal financial system could unlock liquidity, reduce import dependence and reshape how Indians invest in the precious metal.
Gold Goes Digital
Luniya compared the evolution of gold ownership to the transformation witnessed in equity markets and payments over the last two decades.
“Shares moved from paper certificates to demat accounts. Cash moved from wallets to UPI. Gold is now following the same path,” he said.
With prices touching around ₹1.5 lakh per 10 grams, purchasing physical gold has become increasingly expensive for many households. Digital platforms, however, allow investors to start with significantly smaller amounts.
“You can now buy gold for as little as ₹150,” Luniya said, adding that digital ownership makes regular investing possible, much like a systematic investment plan (SIP). Instead of waiting to accumulate enough money to buy jewellery or coins, investors can gradually build their gold holdings over time.
From Investment to Jewellery
While digital gold is often viewed as a substitute for physical ownership, Luniya believes it actually complements traditional buying habits.
He explained that investors can accumulate gold digitally over several years and eventually convert those holdings into jewellery whenever required, particularly for weddings or family occasions.
A key innovation enabling this transition is the Electronic Gold Receipt (EGR), an exchange-traded instrument backed by physical gold stored in regulated vaults. According to Luniya, EGRs could eventually allow investors to transfer gold directly from their demat account to a jeweller, paying only the making charges or any additional quantity required.
“This makes gold accumulation far more efficient while still allowing families to eventually own physical jewellery,” he said.
Trust Through Standardisation
Luniya also highlighted the impact of mandatory hallmarking in improving consumer confidence.
Earlier, buyers often had little certainty about the purity of jewellery, with many discovering years later that ornaments sold as 22-carat gold were of lower quality. Today, BIS hallmarking and digital verification have standardised quality, making transactions significantly more transparent.
He believes this increased trust provides the foundation for wider adoption of digital gold ownership.
Unlocking a Sleeping Asset
According to Luniya, India’s privately held gold is effectively a “sleeping asset.”
While households continue buying gold every year, the country also imports hundreds of tonnes annually, placing pressure on foreign exchange reserves.
“If even a small portion of the gold already lying in Indian homes becomes financially productive, it can release enormous liquidity into the economy,” he said.
That liquidity, he argued, could support businesses, improve access to credit and reduce dependence on fresh imports.
Rather than encouraging people to stop buying gold, Luniya advocates changing how it is accumulated and utilised.
Lessons From History
During the discussion, Luniya referred to historical examples to underline gold’s strategic importance.
He cited the United States’ gold policies during the Great Depression and India’s decision to pledge gold reserves during the 1991 balance-of-payments crisis as examples of how gold has served as a critical financial asset during periods of economic stress.
His broader point was that gold should not merely remain locked away but should be capable of supporting economic activity whenever required.
Why Gold Remains Relevant
The conversation also touched upon the resurgence of gold globally.
Luniya noted that central banks across the world have increased their gold purchases amid geopolitical tensions, rising sovereign debt and efforts to diversify reserves beyond the US dollar.
Against this backdrop, he believes India’s own household gold reserves can play a far greater role in strengthening the country’s financial resilience.
Among the various investment avenues available today—including Gold ETFs, digital gold and other market-linked products—he identified Electronic Gold Receipts as one of the most promising developments because they combine the security of physical gold with the convenience of electronic ownership.
The Road Ahead
Luniya believes younger investors are already leading the shift towards digital assets.
Unlike previous generations, who primarily associated gold with jewellery, today’s investors are increasingly comfortable owning financial assets electronically while retaining the flexibility to convert them into physical form whenever required.
For him, the future of gold lies not in replacing tradition but in modernising it.
Families will continue buying jewellery for emotional and cultural reasons, but the process of saving and investing in gold is likely to become increasingly digital. If that transition gathers pace, Luniya believes India’s vast household gold reserves could evolve from being a passive store of wealth into a productive financial asset—one that benefits not only individual investors but the broader economy as well.
-
News4 weeks agoSC Says No Stay On New UPI Charges Above ₹2,000
-
Podcast1 year agoNitin Jain: From IIT to Investment Titan, Managing ₹60,000 Crore AUM
-
News1 month agoNSE Makes Long-Awaited Market Debut After ₹22,562-Crore IPO
-
Explainer5 months agoHow Much SIP Do You Need to Build ₹1 Crore? The Power of Time and Compounding
-
Podcast2 years agoFrom ₹1 Lakh Lost to Managing ₹650 Crore: How Divam Sharma of Green Portfolio Built a Fundamental Investing Approach
-
Podcast4 months agoCan ₹200 SIPs Create India’s Next Investing Revolution? Ravi Kumar Jha’s Big Bet On Financial Inclusion
-
Podcast1 year agoFrom ₹1 Lakh Lost to Managing ₹650 Crore: How Divam Sharma of Green Portfolio Built a Fundamental Investing Approach
-
News2 weeks agoUPI Charges on Payments Above ₹2,000 Delayed Until After Diwali
