Microfinance plays a significant role in India's growth. It strives to assist economically excluded communities in achieving better asset creation and income security at the family and community level. The country's microfinance sector showed signs of recovery during the fourth quarter of the financial year 2021-22, following the pandemic, with over 13% portfolio growth among lenders from the previous quarter and around 5% year-on-year (YoY) growth, indicating field activities returning to near normalcy. According to a research, the gross loan portfolio (GLP) of the entire microfinance industry increased by 11.9% from Rs 2,31,787 crore on March 31, 2020 to Rs 2,59,377 crore on March 31, 2021. The disbursements of NBFC-MFIs increased to Rs 30,216 crore in Q4 FY22 from Rs 27,364 crore in Q4 FY21. The purpose of the study is the role of the Microfinance Industry in India, which finances micro, small, and medium-sized enterprises (MSME) in India.