Journal of FinTech and Sustainable Finance

Articles

Vol. 1 (2025)

Fintech Revolution in Micro Textile Industry: A Study Focusing the Case of Punjab, India

Submitted
October 2, 2025
Published
2025-10-02

Abstract

The purpose; The purpose of this study is to examine the perceptions of micro-enterprises regarding the use of FinTech tools to meet their financial requirements. In the Indian context, micro-enterprises within the textile industry form a critical pillar of the economy, sustaining growth while generating significant employment opportunities. Despite facing considerable challenges—including inadequate infrastructure, limited access to institutional finance, and restricted market linkages—this sector has demonstrated remarkable growth in employment generation, investment inflows, production capacity, and overall contribution to the national GDP.

Methodology; The study adopts a quantitative research approach, collecting a total of 100 primary responses through a structured questionnaire.

Findings; The survey reveals that firms' understanding of FinTech instruments, as a source of loan is fairly poor. In addition, the study's data generates three unique aspects: the Banking, MSME, and FinTech aspects. Fintech is gaining recognition in the Textile business, but it is not yet pervasive. Entrepreneurs in the Textile business are in severe need of Fintech funding alternatives. Entrepreneurs are unsatisfied with the services provided by banks, but they have no alternative options for obtaining financing. Fintech is considered by the Micro Textile sector to be the finest alternative source of funding and financial support.

Originality; Numerous scholars have examined diverse dimensions of FinTech application and utilisation, as evidenced by prior research. However, there are very few studies focusing on rising nations, although their need is rather strong. This is a good effort concerning the Indian state of Punjab from a FinTech stand point on MSME’s.

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