The objective of this project is to improve SME access to finance (particularly longer term financing) and business development services, thereby fostering SME growth, competitiveness and employment creation, which are key to achieving GoI's overall objectives of economic growth and poverty reduction. The project is designed to achieve its objective through a multi-pronged approach that will that will address key bottlenecks to SME financing and development in India, by focusing on: (a) creating a more enabling policy, regulatory and institutional framework for SME financing by banks (the primary target group for this project); (b) helping banks gain better access to longer term financing for lending to the SME sector, thereby facilitating capital formation and technology up-grading; (c) mitigating banks' risks related to SME lending and reducing transactions costs of such lending while, at the same time, ensuring that banks enhance the quality of their SME loan portfolios; and (d) strengthening business development services and market linkage programs for SMEs (the secondary target group), thereby helping SMEs to improve profitability and competitiveness, and become more creditworthy.