IRIS Business Services Limited has signed a Memorandum of Understanding (MoU) with the Department of Industries, Trade & Commerce, Government of Goa. This collaboration aims to support the growth of the MSME ecosystem in the state through data-driven and technology-led solutions.
At an event held on February 18 in Goa, IRIS CEO S. Swaminathan signed the MoU in the presence of Shri Pramod Sawant, Hon’ble Chief Minister of Goa, and Shri Aleixo Reginaldo Lourenco, Chairman of Goa Industrial Development Corporation. The partnership is structured as a Public-Private Partnership (PPP) to address key challenges faced by MSMEs, particularly in accessing credit.
Addressing the MSME Credit Challenge
One of the most pressing issues for MSMEs in Goa is limited access to credit. The reluctance of banks to extend funding has been a long-standing barrier to their growth. Goa’s credit-deposit (CD) ratio for scheduled commercial banks, according to the Reserve Bank of India (RBI), stood at 26.5% in 2023, significantly lower than the national average of 75.8%. This disparity underscores the urgent need for solutions that enhance credit availability for MSMEs.
According to IRIS CEO S. Swaminathan, harnessing data effectively is the key to solving this issue. “The digitization initiatives launched by the Government of India are generating valuable data streams that lenders can utilize to improve credit flow to MSMEs,” he explained. By leveraging structured financial data, banks can gain better insights into the creditworthiness of MSMEs, reducing risk and increasing lending confidence.
A Comprehensive Digital Transformation Approach
Beyond enabling credit, IRIS is committed to simplifying compliance and operational processes for MSMEs. As part of the MoU, IRIS will develop an integrated compliance platform built on a common data standard. This will help businesses reduce the administrative burden associated with regulatory filings, allowing them to focus on growth and innovation.
Additionally, IRIS will develop and implement several key digital initiatives, including:
- MSME Dashboard – A centralized platform to help the Department of Industries, Trade & Commerce monitor MSME performance and trends in real time.
- e-Bookkeeping Services – Digitized record-keeping solutions to streamline financial management for MSMEs.
- e-Invoice Services – Enabling seamless electronic invoicing to enhance transparency and efficiency.
- e-Marketplace for MSMEs – Facilitating greater market access and business opportunities for small enterprises.
Government’s Role in Enabling a Supportive Ecosystem
The Government of Goa will play a crucial role in facilitating the success of these initiatives by providing necessary administrative and policy support. Ensuring a conducive regulatory environment will be essential for driving adoption and maximizing the benefits of digital transformation. Furthermore, the government will actively work to create awareness among MSMEs, encouraging them to embrace these solutions for sustainable growth.
A Model for Other States to Follow
Reflecting on the significance of this collaboration, Swaminathan expressed gratitude for the Chief Minister’s support. “The first conversation I had with any state government on how data can be leveraged to boost MSME growth was with the late Manohar Parrikar. It won’t be long before other states look to replicate the Goa model to strengthen their own MSME ecosystems.”
The IRIS-Government of Goa partnership marks a significant step toward building a digitally empowered and financially inclusive MSME sector. By addressing critical barriers, such as credit access and regulatory compliance, this initiative is set to create lasting impact, fostering resilience and growth among Goa’s small businesses.
