MSME Ministry Boosts Sector with New Reforms and Credit Support

The Ministry of Micro, Small and Medium Enterprises (MSME) has implemented several initiatives to strengthen, formalise, and expand the sector, which is a backbone of India’s economy. These measures focus on easing business processes, enhancing credit access, supporting artisans, and addressing delayed payments.

Udyam and Udyam Assist Platforms

To simplify business operations, the government launched Udyam Registration on July 1, 2020, providing MSMEs with a unified platform for recognition. Additionally, the Udyam Assist Platform (UAP) was introduced to formalise Informal Micro Enterprises (IMEs), enabling them to benefit from Priority Sector Lending (PSL). 

As of July 31, 2025, over 6.63 crore MSMEs have registered across both platforms.

Financial Support and Credit Schemes

The government has revamped the Credit Guarantee Scheme, infusing ₹9,000 crore to facilitate an additional ₹2 lakh crore in credit for MSEs, thereby creating employment opportunities. Effective April 1, 2025, collateral-free loans up to ₹10 crore with up to 90% guarantee coverage are available through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The Self-Reliant India (SRI) Fund of ₹50,000 crore has been established to provide equity funding to high-potential MSMEs, ensuring their growth into larger enterprises.

Schemes for Artisans and Entrepreneurs

The PM Vishwakarma Scheme, launched in September 2023, provides holistic support to traditional artisans and craftspeople across 18 trades. Additionally, under the Prime Minister’s Employment Generation Programme (PMEGP), the maximum project cost limit has been increased to ₹50 lakh for manufacturing and ₹20 lakh for services, broadening the scope for entrepreneurship.

Addressing Delayed Payments

To resolve the persistent issue of delayed payments, the Trade Receivables Discounting System (TReDS) has been implemented. This system allows MSMEs to finance trade receivables from corporates, government departments, and PSUs through multiple financiers in an electronic format.

Also Read: MSMEs Can Now Access Loans Up to ₹10 Crore with Digital Footprint Model!

Conclusion

The government’s proactive steps, from registration reforms and financial infusion to artisan support and payment facilitation, highlight its commitment to empowering MSMEs. With over 6.63 crore enterprises now registered, these measures will enhance competitiveness, expand employment, and strengthen India’s economic resilience.

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