Union Budget To Address MSMEs’ Concerns About Funds, Tech-Upgrade & Delayed Payments: MSME Minister Manjhi

ENA MSME 2025-01-30 14:18:16 New Delhi, Jan 30 (KNN) Union Minister Jitan Ram Manjhi has announced comprehensive measures aimed at micro, small, and medium enterprises (MSMEs) challenges in the upcoming Union Budget 2025. Speaking exclusively to ET Online, the MSME Minister outlined initiatives targeting funding constraints, technological advancement, and delayed payments that have historically impeded the sector's growth. The government's strategic vision positions MSMEs as instrumental in addressing income inequality while driving economic growth. Manjhi, who represents Bihar's Gaya constituency, emphasised that empowering small businesses is fundamental to bridging income disparities across the nation. This focus comes at a crucial time as India, despite celebrating its 76th Republic Day, continues to grapple with economic inequality challenges. Finance Minister Nirmala Sitharaman, who will present the budget on February 1, has prioritised MSME sector reforms according to Manjhi. The ministry is implementing significant changes to bank guarantee requirements and promoting collateral-free lending to enhance credit accessibility. This initiative includes government-backed loan guarantees designed to instill confidence in financial institutions lending to MSMEs. The sector has demonstrated remarkable expansion, with MSME units multiplying fifteenfold over the past five years. Current data indicates that MSMEs contribute approximately 35 percent of India's manufacturing output and account for 40-45 percent of the country's exports. Unlike large corporations concentrated in metropolitan regions, these enterprises have established a substantial presence in rural areas, generating significant employment opportunities for local communities. To advance technological capabilities, the government has established MSME Tool Rooms and Technology Centres nationwide. These facilities are producing globally competitive products and fostering innovation throughout the country. Complementing these efforts, the MSME ministry is enhancing the Udyam Portal system to streamline credit access. The portal currently boasts over 22 crore MSME registrations, with an additional 3 crore entities registered under Udyam Assist, marking substantial progress in sector formalisation. The PM Vishwakarma Loan Yojana has emerged as a cornerstone initiative supporting traditional artisans and craftsmen. According to Manjhi, this program is projected to benefit more than 30 lakh traditional artisans and grassroots entrepreneurs, providing essential liquidity support and fostering entrepreneurial development within these communities. The scheme represents a targeted approach to addressing specific needs within the MSME ecosystem while promoting traditional craftsmanship and entrepreneurship. (KNN Bureau) 40849 https://knnindia.co.in/news/newsdetails/msme/union-budget-to-address-msmes-concerns-about-funds-tech-upgrade-delayed-payments-msme-minister-manjhi 2025-01-30 14:18:16 knnindia.co.in Union Budget To Address MSMEs’ Concerns About Funds, Tech-Upgrade & Delayed Payments: MSME Minister Manjhi