Less than 10% of micro, small, and medium enterprises (MSMEs ) in India have adequate insurance coverage, according to a report released by the National Institute for Micro, Small and Medium Enterprises (NI-MSME).
There are over 63m MSMEs in India that in total contribute around 30% to India's GDP, reported Knowledge and News Network (KNN), citing the 2023 annual report of the Ministry of Micro, Small, and Medium Enterprises.
The hurdle to MSMEs purchasing insurance is that many small business owners still view insurance as an unnecessary expense rather than a risk management tool.
Industry experts call for collaborative efforts between government agencies, industry associations, and insurance providers to raise awareness and provide financial incentives for insurance adoption.
KNN is an online news network created by GIZ-German Agency for International Cooperation and the Federation of Indian Micro and Small & Medium Enterprises.