Ministry of Micro, Small, and Medium Enterprises (MSME) takes various steps for promotion and development of MSME sector

The Ministry of Micro, Small, and Medium Enterprises (MSME) has undertaken several initiatives to promote and develop the sector, aiming to enhance formalisation, access to finance, and overall ease of doing business. Key measures include the Udyam Registration for MSMEs launched on July 1, 2020, and the Udyam Assist Platform (UAP) to bring Informal Micro Enterprises under the formal ambit for availing benefits under Priority Sector Lending. Retail and wholesale traders were included as MSMEs with effect from July 2, 2021, further broadening the sector’s reach. The Credit Guarantee Scheme has been revamped with an infusion of Rs. 9,000 crore (US$ 1.03 billion) to enable additional credit of Rs. 2,00,000 crore (US$ 22.89 billion), creating expanded employment opportunities. The ‘PM Vishwakarma’ Scheme, launched on September 17, 2023, provides holistic support to traditional artisans and craftspeople across 18 trades. Additionally, the Self-Reliant India Fund has been set up with Rs. 50,000 crore (US$ 5.72 billion) in equity funding for MSMEs with growth potential.
Other key interventions include collateral-free loans up to Rs. 10 crore (US$ 1.1 million) with 90% guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises, effective from April 1, 2025. The Trade Receivables Discounting System (TReDS) facilitates electronic financing of MSME trade receivables from corporates, government departments, and public sector undertakings, addressing delayed payments. The Prime Minister’s Employment Generation Programme (PMEGP) has enhanced project cost limits from Rs. 25,00,00 - 50,00,000 (US$ 28,614-57,228) for manufacturing and Rs. 10,00,000 - 20,00,000 (US$ 11,445-22,891) for services, expanding the scheme’s reach. Between July 1, 2020, and July 31, 2025, a total of 6.63 crore MSMEs were registered on the Udyam Registration Portal and Udyam Assist Platform, reflecting the sector’s significant formalisation and growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.