India Aims to Double MSME Credit Guarantees in Next Two Years

ENA MSME 2024-09-11 16:56:08 New Delhi, Sep 11 (KNN) The Indian government aims to significantly enhance the credit guarantees available to micro and small enterprises (MSEs) under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, with plans to expand this by an additional Rs 5 lakh crore over the next two years, a senior official announced. Speaking at a FICCI event on Tuesday, Rajneesh, Additional Secretary and Development Commissioner of Micro, Small, and Medium Enterprises (MSMEs), revealed that credit guarantees worth Rs 4 lakh crore had been extended to MSEs in the past two years. This follows a cumulative credit guarantee of Rs 2.6 lakh crore disbursed through the CGTMSE scheme in the first 20 years of its existence. In a span of 22 years, CGTMSE had extended credit guarantees worth Rs 2.6 lakh crore. However, in the last two years alone, we have surpassed that by providing Rs 4 lakh crore. In the next two years, we plan to ramp this up by another Rs 5 lakh crore, Rajneesh stated. The CGTMSE was jointly established by the Ministry of MSME and the Small Industries Development Bank of India (SIDBI) to facilitate institutional credit flow to micro and small enterprises, playing a crucial role in ensuring financial access for this sector. Rajneesh also emphasized the governments success in formalizing the MSME sector. He noted that the number of Udyam-registered MSMEs had surged from 1.65 crore to 5 crore over the past year, significantly narrowing the formalisation gap. This growth was driven by a concerted effort involving state governments and industry associations, he explained. Chakravarthy T. Kannan, Secretary General of the Quality Council of India (QCI), echoed the governments push for MSME development. He introduced the concept of a 'Universal Quality Interface' (UQI), aimed at streamlining decision-making for Original Equipment Manufacturers (OEMs) based on the Zero Defect Zero Effect (ZED) certification process. Kannan also discussed ongoing collaborations with the Open Network for Digital Commerce (ONDC), which is being restructured to include MSMEs with a focus on quality. The MSME Sustainable (ZED) Certification drive is a government-led initiative encouraging MSMEs to adopt practices that ensure zero defects and zero environmental impact, furthering Indias vision for 'Viksit Bharat' (Developed India). (KNN Bureau) 39233 https://knnindia.co.in/news/newsdetails/msme/india-aims-to-double-msme-credit-guarantees-in-next-two-years 2024-09-11 16:56:08 knnindia.co.in India Aims to Double MSME Credit Guarantees in Next Two Years