Ministry of MSME Enhances Support to 6.63 Crore Enterprises Through Key Schemes and Digital Initiatives

The Ministry of Micro, Small and Medium Enterprises (MSME) has initiated major reforms and schemes to promote inclusive growth and digital integration, benefiting 6.63 crore enterprises across India. These efforts aim at formalising the sector, enhancing credit access, and boosting employment generation.

Digital Registration and Formalisation of Over 6.63 Crore MSMEs

Since July 1, 2020, more than 6.63 crore MSMEs have been registered under the Udyam Registration Portal and the newly introduced Udyam Assist Platform (UAP). These platforms provide easy regulatory access and formal recognition to Micro, Small and Medium Enterprises, including informal micro businesses through UAP, facilitating their access to benefits such as Priority Sector Lending (PSL).

Financial Support Through Credit and Loan Schemes

The revamped Credit Guarantee Scheme, with ₹9,000 crore fund infusion, now facilitates collateral-free loans up to ₹10 crore with 90% guarantee coverage, supporting expansion and employment. The Self-Reliant India (SRI) Fund, with ₹50,000 crore allocated, has been launched to provide equity support to scalable MSMEs aiming to transition into larger enterprises.

Read More: BSE Tightens Rules for SME Migration to Main Board to Boost Quality!

Inclusive Measures in Trade and Employment

Retail and wholesale traders have been included as MSMEs since July 2, 2021, enabling them to access similar benefits. The PM Vishwakarma Scheme, launched on September 17, 2023, focuses on 18 traditional trades, providing artisans with a comprehensive support system, including skill training, financial aid, and exposure to new markets.

Boost to Trade Receivables and Entrepreneur Generation

To address delayed payments, the Trade Receivables Discounting System (TReDS) has been implemented, connecting MSMEs with corporate buyers and financiers digitally. In addition, the project cost limit under the PM Employment Generation Programme (PMEGP) was raised to ₹50 lakh for manufacturing and ₹20 lakh for services, significantly increasing the scheme's reach and scope.

Conclusion

The Ministry of MSME's strategic initiatives, from digital registration to financial schemes and inclusion policies, have streamlined processes and boosted formalisation. The comprehensive outreach has not only supported 6.63 crore enterprises but also paved the way for scalable growth, increased credit flow and vibrant employment opportunities within the MSME ecosystem.

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