A large portion of this peculiar Indian feature has to do with the fact that firms remain small in nature. However, if they continue to remain small, as they turn into adolescents and adults, it is something to worry about. Perhaps, policy measures create a perverse incentive for them to remain small. Credit Suisse estimates that the total amount of loans disbursed under the PMMY programme crossed Rs.1.25 trillion as of March 2016. There are three types of loans under PMMY: Shishu (up to Rs.50,000), Kishore (from Rs.50,001 to Rs.5 lakh) and Tarun (from Rs.500,001 to Rs.10,00,000).

Source: Mint May 30, 2016 18:45 UTC