The Small Industries Development Bank of India (SIDBI) is the principal financial institution dedicated to the promotion, financing, and development of industries in the small-scale sector in India. SIDBI plays a vital role in supporting the micro, small, and medium enterprises (MSMEs) by providing financial assistance, advisory services, and facilitating technology upgradation. It also coordinates the functions of other institutions that work in similar capacities within the MSME sector.

✅ SIDBI (Small Industries Development Bank of India) is a government-owned financial institution.

Ownership and Structure:

• SIDBI was set up by the Government of India in 1990 under the Small Industries Development Bank of India Act, 1989.

• It is a wholly owned subsidiary of the Industrial Development Bank of India (IDBI), which itself was initially set up by the government.

Key Functions of SIDBI:

• Financing MSMEs: SIDBI provides funding to small and medium-sized enterprises to help them grow and scale their operations.

• Promoting MSMEs: SIDBI actively promotes the creation and development of MSMEs by offering various schemes, including venture capital, term loans, and working capital financing.

• Coordinating with other institutions: SIDBI coordinates the work of other financial institutions supporting the MSME sector, ensuring that small industries have access to various forms of credit and support.