India’s MSME credit portfolio reached Rs. 4.74 tn in June 2026, rising 12.5 per cent from a year earlier, but most of the increase came from small and medium businesses. Lending to micro enterprises remained broadly unchanged, according to CRIF High Mark’s latest MSMEx Spotlight report, which examined data available at the end of June. CRIF High Mark grouped businesses by outstanding credit exposure rather than the government’s MSME classification. Micro businesses were defined as those with exposure up to Rs. 20 mn, small businesses as those with exposure above Rs. 20 mn and up to Rs. 200 mn, and medium businesses as those with exposure above Rs. 200 mn and up to Rs. 1 bn. Credit portfolios for small and medium businesses grew 20.3 per cent and 21.3 per cent, respectively, during the year, while the micro segment saw little change. Micro businesses still accounted for 84.4 per cent of all active MSME loan accounts, indicating room for greater credit access and formalisation among smaller enterprises. Manufacturing recorded the strongest growth among major MSME activities, with outstanding credit increasing 17.4 per cent year-on-year. Trading grew 12.7 per cent, while services rose just 0.2 per cent. Engineering and Machinery held the largest share of manufacturing credit, followed by Agro Products and Forestry, Chemicals, Basic Metals and Textiles; retail and wholesale trade were the leading activities within trading. Credit is also becoming more concentrated in districts with established industrial and trading bases. In Engineering and Machinery, the number of high-density hubs almost doubled to 47 from 24 over three years, accounting for 63.5 per cent of sector credit. Chemicals had 24 mature clusters representing 53.1 per cent of credit, while 15 major textile clusters accounted for 60.8 per cent, with Surat contributing 19.4 per cent. Wholesale Trade’s high-volume districts more than doubled to 119 from 54, accounting for 71.7 per cent of sector credit, while Retail Trade districts rose to 189 from 143 and represented 75.1 per cent of the industry’s credit. Private banks remained the leading lender type in major hubs including Surat, Ahmedabad, Tiruppur and Rajkot, while NBFCs increased their share in some activities such as Chemicals.