Rebounding from a Pandemic: Access to Credit, Gender, and Productivity of Indian SMEs

Using cross-section data on small and medium enterprises (SMEs) for 2022, the paper examines the interface between gender and credit access. In particular, we examine whether access to formal finance for gender-focussed firms improves their performance. The findings reveal that gender-focussed firms demonstrate higher productivity, especially when they have access to formal finance. The findings differ across firms with varying degrees of gender involvement and highlights a subtle shift in productivity in the post-COVID-19 phase, particularly for those with access to formal finance. We also dissect the causes driving such behaviour and uncover the importance of both demand- and supply-side factors.