Comprehensive Measures Taken To Support MSMEs, Govt Tells Rajya Sabha

New Delhi, Dec 8 (KNN) The Government has introduced a wide range of measures to strengthen financial, technological and trade support for Micro, Small and Medium Enterprises (MSMEs), aimed at addressing structural challenges and improving sectoral competitiveness. 

A key intervention has been the Emergency Credit Line Guarantee Scheme (ECLGS), which, according to a State Bank of India research report dated January 23, 2023, prevented nearly 14.6 lakh MSME accounts  slipping into non-performing asset (NPA) category.

In written reply to a question in Rajya Sabha on December 8, Minister of State for MSME Shobha Karandlaje listed out several reforms implemented over recent years.

These reforms include the revised MSME definition implemented in 2020 and further updated from April 1, 2025 the introduction of Udyam Registration to simplify compliance, the inclusion of retail and wholesale traders under the MSME category, and the extension of non-tax benefits for three years when enterprises move to a higher category.

The launch of the Udyam Assist platform has also brought informal micro enterprises into the formal lending framework, while the Self-Reliant India Fund continues to support MSMEs through equity infusion.

To ensure adequate financial and technological support, the Government has implemented multiple schemes benefiting sectors such as leather and textiles. 

These include the Prime Minister’s Employment Generation Programme for new micro enterprises, the Special Credit Linked Capital Subsidy Scheme offering a 25 per cent subsidy for SC/ST-owned units, the Credit Guarantee Scheme for collateral-free loans up to Rs 10 crore, and collateral-free credit of up to Rs 20 lakh for informal micro enterprises. 

Additional support is also available through PM Vishwakarma Yojana and Mudra loans.

The MSME Champions Scheme has been introduced with the objective of modernising processes, reducing wastage, improving competitiveness and facilitating wider domestic and global outreach. 

To further strengthen technological capabilities, the Ministry has established Technology Centres and Extension Centres across the country, offering services such as technology support, skilling, consultancy and incubation to enterprises and skill seekers.

(KNN Bureau)