MUMBAI : Mumbai: Gujarat has emerged as the top state, in terms of performance and credit growth potential for MSME (micro, small and medium enterprises) Corporate Lending in India, followed by Andhra Pradesh, Haryana, Karnataka and Delhi, said TransUnion CIBIL- SIDBI’s MSME Pulse Report.

MSME corporate entities are borrowers with aggregate credit exposure of up to 50 crore. The market size of this category was 17.6 lakh crore as of March 2019, it said.

Other states with high potential in MSME corporate lending are Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh and Jammu & Kashmir, according to the report.

“Andhra Pradesh ranks highest in market growth in FY19, ranking improved significantly in market growth and delinquency parameters between FY17 to FY19. Haryana and Karnataka have got equal scores in MSME Ranking, but Haryana fared better in delinquency and score quality of consumers while Karnataka is positioned well in market size and market growth," the report said, adding that Delhi ranks highest in low riskiness of MSMEs measured by better CIBIL MSME Rank of entities.

According to the report, total debt in India has increased at a compounded annual growth rate (CAGR) of 13.3% to reach 253 lakh crore in the five-year period from March 2015 to March 2019. Total debt includes government debt, debt of corporate entities, and individual borrowers.

“The growth in aggregate debt in the past four years is powered by a 22% CAGR growth on lending to individuals (including consumer loan, business loan to individuals and other loans), 13.4% CAGR of lending to commercial entities (including MSME and corporate entities) and a 10.6% of government debt," the report said.

The comparatively higher rate of individual lending, it said, has translated into a major shift in the composition of the lending industry in favor of individuals.