Govt Sets MSME Credit Growth Target Of Rs 1.54 Lakh Crore For FY25

New Delhi, Nov 11 (KNN) The government has announced ambitious credit growth targets for Micro, Small, and Medium Enterprises (MSMEs), mandating scheduled commercial banks and Non-Banking Financial Companies (NBFCs) to provide additional credit of Rs 1.54 lakh crore in the current financial year (FY25).

Finance Minister Nirmala Sitharaman unveiled a comprehensive three-year credit growth roadmap for the MSME sector, projecting targets of Rs 5.75 lakh crore, Rs 6.21 lakh crore, and Rs 7 lakh crore for financial years 2024-25, 2025-26, and 2026-27, respectively.

The announcement came during the 'National MSME Cluster Outreach' program in Bengaluru, jointly organised by the Department of Financial Services and the Small Industries Development Bank of India (SIDBI).

During the event, which connected 150 MSME clusters virtually, the Finance Minister emphasised MSMEs' vital role in driving economic growth, innovation, job creation, and fostering self-reliance.

Union Minister for MSMEs, Jitan Ram Manjhi, outlined various government initiatives and urged banks to increase their focus on rural enterprise lending.

The program marked several significant inaugurations, including six new SIDBI branches in Karnataka and four Nari Shakti Branches of Union Bank of India in major cities, specifically designed to support women entrepreneurs.

A new Learning Centre of Canara Bank was also inaugurated at Bagaluru, Bengaluru, strengthening the financial infrastructure for MSMEs.

In a demonstration of immediate impact, the Finance Minister distributed sanction letters worth Rs 25.75 crore to 11 MSME customers through SIDBI, and an additional Rs 11 crore to two customers through the Union Bank of India's Nari Shakti Branch.

The event culminated with SIDBI signing a memorandum of understanding with the Peenya Industries Association, aimed at enhancing MSME support through capacity building, credit facilities, and knowledge-sharing initiatives.

(KNN Bureau)