New Delhi, May 23 -- India's Micro, Small and Medium Enterprises (MSMEs) sector recorded notable credit growth of 13 percent year-on-year, with total commercial credit exposure reaching Rs 35.2 lakh crore by March 2025, compared to Rs 31 lakh crore in the previous year.

The expansion was primarily attributed to increased credit supply to existing borrowers within the sector, which encompasses enterprises with credit exposures up to Rs 50 crore.

The sector demonstrated improved financial health, with overall balance-level delinquencies declining to 1.8 percent, marking the lowest level in five years.

This represents a 35 basis point improvement from the 2.1 percent recorded in March 2024.

The delinquency metric measures accounts that a...