The Government of India has taken several initiatives to provide support to Micro, Small, and Medium Enterprises (MSMEs) for improving access to finance, timely payments, and faster technology adoption
- IBEF
- December 2, 2025
The Government of India is focused on enhancing the Micro, Small, and Medium Enterprises (MSME) framework by implementing measures to improve access to credit, guarantee prompt payments, and promote the uptake of technology. One program to enhance MSMEs is the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which provides an infusion of Rs 9,000 crores (US$ 1.08 billion) to increase the available credit to Rs 2 lakh crores (US$ 24.1 billion). The guarantee ceiling has also increased to Rs. 10 crore (~US$ 1.2 million) with coverage up to 90%. Entrepreneurship support continues through the Prime Minister’s Employment Generation Programme (PMEGP), which offers margin money subsidies of up to 35% for new microenterprises. The scheme supports project costs of Rs. 50 lakh (~US$ 60,000) in manufacturing and Rs. 20 lakh (~US$ 24,000) in services.
For equity financing, the Self-Reliant India (SRI) Fund provides Rs. 50,000 crore (US$ 6.02 billion) in support, including Rs. 10,000 crore (US$ 1.2 billion) from the Government. To promote timely payments, the SAMADHAAN Portal and 161 MSE Facilitation Councils address dispute resolution. At the same time, the Online Dispute Resolution (ODR) platform ensures fully digital case processing. The TReDS platform, now mandatory for corporates with a turnover of Rs. 250 crore (US$ 30 million), accelerates receivable financing.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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