Viksit Bharat 2047: SIDBI, BoB Partner to Power MSME & Startup Growth

In a landmark move to strengthen India’s entrepreneurial ecosystem, the Small Industries Development Bank of India (SIDBI) and Bank of Baroda (BoB) signed a Memorandum of Understanding (MoU) to expand credit delivery, enhance working capital access, and scale financing support for MSMEs and startups nationwide. The collaboration directly aligns with the Government of India’s long-term vision of Viksit Bharat 2047, aiming to deepen formal financial inclusion for traditional MSMEs and high-growth startups.

Multi-Layered Startup Support

The SIDBI–Bank of Baroda partnership introduces a comprehensive framework designed to address diverse financial needs of startups, ranging from venture debt to export financing. The MoU outlines four key interventions:

1. Startup Financing through Coordinated Lending

SIDBI will leverage its Venture Debt Programme, a critical instrument for asset-light, innovation-led startups. Bank of Baroda will complement this with its Startup Banking Solutions, offering specialised financial products, advisory services, and tailor-made credit solutions for early and growth-stage founders. This coordinated lending approach will significantly strengthen the availability of non-dilutive capital for promising startups.

2. Digital Working Capital Access

BoB’s tech-enabled Working Capital Platform will provide SIDBI-sanctioned MSMEs and startups with quick onboarding, seamless approvals, digital monitoring, and faster access to revolving capital. This digital-first approach will reduce cash-flow bottlenecks and empower innovation-driven enterprises to scale without delays.

3. Export Support for High-Growth Startups

Bank of Baroda will leverage its global footprint across 17 countries to help startups integrate into international value chains. Export-related financial assistance, global market advisory, and cross-border business solutions will give Indian deep-tech, manufacturing, and D2C startups a competitive edge in scaling globally.

4. Cluster, Incubator & Accelerator Collaboration

The MoU also extends support to incubators, accelerators, and startup clusters, particularly in tier-2 and tier-3 cities. By strengthening innovation ecosystems, the partnership will promote coordinated developmental initiatives and institutional support for entrepreneurs beyond metropolitan hubs.

Ceremony and Leadership Insights

The MoU signing was formalised in the presence of M. Nagaraju, IAS, Secretary, Department of Financial Services (DFS), who presided as Chief Guest. Senior dignitaries including Manoj Ayyappan, Joint Secretary, DFS; Manoj Mittal, CMD, SIDBI; Lalit Tyagi and Lal Singh, Executive Directors, Bank of Baroda, and leadership teams from both institutions attended the ceremony.

Delivering the keynote, M. Nagaraju said: “This partnership brings together the strengths of a dedicated MSME development institution and a large commercial bank to build a stronger credit ecosystem for MSMEs and startups. By combining SIDBI’s innovative financing models with Bank of Baroda’s national and international reach, this MoU will help enterprises both traditional and new-age access timely working capital, scale operations, and integrate into global value chains.”

Manoj Ayyappan emphasised the transformative role of the collaboration in expanding affordable credit access and driving innovation-led growth.

Manoj Mittal, CMD, SIDBI, highlighted the institution’s legacy: “For 35 years, SIDBI has shaped the MSME and startup financing landscape. This MoU deepens our ability to jointly support MSMEs and high-potential startups through venture debt, digital credit, and coordinated working capital solutions.”

Lalit Tyagi, Executive Director, Bank of Baroda, added: “Through this partnership, we will strengthen joint financing, enhance digital credit enablement, and expand specialised banking solutions for startups. Our global presence will help startups tap export opportunities.”

In his vote of thanks, Lal Singh commended both institutions for their commitment to value creation. During the ceremony, sanction letters under the new SIDBI–BoB framework were handed over to MSME customers, marking the operational launch of the initiative.

Frequently Asked Questions on the SIDBI–Bank of Baroda MoU

Q1: What is the SIDBI–Bank of Baroda MoU about?

A1: It is a partnership to expand credit delivery, working capital access, and export support for MSMEs and startups under Viksit Bharat 2047.

Q2: How will startups benefit from the partnership?

A2: Startups will gain access to venture debt, digital working capital, export financing, and advisory services.

Q3: What role does Viksit Bharat 2047 play in this initiative?

A3: The MoU aligns with the Government of India’s vision to build a developed, innovation-driven economy by 2047.

The SIDBI–Bank of Baroda MoU represents a strategic leap toward Viksit Bharat 2047, ensuring MSMEs and startups gain timely access to credit, digital working capital, and global market opportunities. By combining SIDBI’s innovation-driven financing with BoB’s international reach, the partnership promises to accelerate India’s entrepreneurial growth story and strengthen its position in the global economy.