<h1>MSME Sector Thrives: NPAs Drop, Thanks to Government Initiatives and RBI's Strengthened Supervision</h1> The MSME sector has experienced significant growth over the past five years, with a notable decrease in non-performing assets (NPAs). Government initiatives have contributed to this trend, including regulatory frameworks for compromise settlements, transfer of stressed assets, and a revival and rehabilitation framework for MSMEs. The Reserve Bank of India has strengthened its supervisory approach to identify vulnerable sectors and resolve stress. Measures such as the pre-packaged insolvency resolution process and COVID-19 regulatory packages have supported MSMEs. The Union Budget 2024-25 introduced mechanisms to ensure continued bank credit during stress periods, further aiding the sector's stability.