Funding Landscape and Gap Analysis for Pharmaceutical MSMEs in Hyderabad Shyamsunder Chitta 1 , Ravi Kumar Jain 1 and Bhimaraya E Metri 2 Abstract Micro, small and medium enterprises have prominent place in the growth of an economy, being consid- ered as key drivers for employment generation and GDP growth, contributing to the balanced regional development. The sector plays an important role in the growth of the Indian pharmaceutical industry. In spite of its vital contribution to the economy, many firms in the sector are facing problems of funding crunch, high-interest rates, lack of government incentives and stringent regulatory barriers for business growth, and the biggest problem being perennially starving for funds. The article presents the results of the survey conducted to find out the challenges encountered by pharmaceutical small and medium enterprise in Hyderabad in procuring their financing needs with reference to banks using hypothesis testing. The study shows a significant relationship between ease of bank finance with interest charged, ownership of enterprise and percentage of bank finance in total finance. Keywords Economic development, bank lending, financial institution, manufacturing, entrepreneurship Introduction The Indian pharmaceutical industry is ranked 3rd in terms of volume and 14th in value across the globe. The country provides majority of generic medications internationally, which is nearly 20 per cent of global exports in terms of volume, enjoying a major place worldwide. The market size of the sector is estimated to grow to $100 billion by 2025, by virtue of increase in the spending by consumer, urbanisation, and the rising need of insurance for healthcare, along with increasing lifestyle diseases, income rise, awareness of health in most parts of the country. Article 1 Symbiosis Institute of Business Management Hyderabad, Symbiosis International (Deemed University), Rangareddy, Near Hyderabad, Telangana, India. 2 Indian Institute of Management Tiruchirappalli, Tiruchirappalli, Tamil Nadu, India. Corresponding author: Shyamsunder Chitta, Symbiosis Institute of Business Management Hyderabad, Symbiosis International (Deemed University), Survey Number 292, Off Bangalore Highway, Mamidipalli, Nandigama, Rangareddy, Near Hyderabad, Telangana 509217, India. E-mail: shyam.chitta@sibmhyd.edu.in SEDME (Small Enterprises Development, Management & Extension Journal) 47(1) 7–16, 2020 © The Authors 2020 Reprints and permissions: in.sagepub.com/journals-permissions-india DOI: 10.1177/0970846420930443 journals.sagepub.com/home/sde