Why this Report matters?
MSMEs contribute close to 30 percent of India’s GDP.
Yet a significant share of their working capital remains locked inside bank guarantees as cash margins and fixed deposits. This report quantifies the cost of that friction and the upside of moving to insurance-backed surety bonds.
Realising this unlock, however, requires coordinated thinking and action across businesses, policymakers, insurers and the wider procurement ecosystem. This report is our attempt at pushing that thought.
Deep Ground Research
Based on primary research conducted by axiTrust across live tenders, issued guarantees, insurer underwriting data, and MSME execution patterns.
Stakeholder Contributions
Shaped through direct inputs from policymakers, public procurement teams, insurers, banks, data service providers and industry participants engaged in surety adoption.
Execution Reality
Validated through insights from beneficiaries, brokers and MSMEs dealing with guarantees, collateral requirements and project delivery on the ground.
Released at the axiTrust leadership dialogue on Surety Bonds for MSMEs, New Delhi
What's inside?
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Macroeconomic impact of replacing bank guarantees with surety bonds
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Liquidity impact on MSMEs across sectors
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GDP uplift from immediate unlock and expanded surety capacity
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Project execution upside over a ten-year horizon
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Policy and infrastructure enablers behind rapid adoption