Executive Summary:
This document details the Indian government's central schemes aimed at strengthening the MSME ecosystem, including those in Tamil Nadu. It outlines various programs related to credit facilitation, digitalization, market linkage, skilling, and technology upgrades. The information provided is current as of July 31, 2025, and includes data from financial years 2022-23, 2023-24 and 2024-25.
Key Points / Main Content:
* **General Support for MSMEs:**
* The Central Government supports MSMEs through various schemes, programmes, and policy initiatives.
* These schemes include Prime Minister's Employment Generation Programme, Credit Guarantee Scheme for Micro and Small Enterprises, PM Vishwakarma scheme, Entrepreneurship Skill Development Programme scheme, Micro and Small Enterprises Cluster Development Programme, Raising and Accelerating MSME Performance, MSME Champions Scheme, etc.
* The Ministry of MSME implements Central Sector Schemes, with funds not allocated state-wise.
* As of 31.07.2025, 6,62,95,529 MSMEs are registered on the Udyam Portal, employing 28,73,62,479 persons.
* 53,44,057 MSMEs are registered in Tamil Nadu employing 2,78,56,442 persons.
* **Credit Guarantee Scheme:**
* The Credit Guarantee Scheme for Micro and Small Enterprises (CGS) provides credit guarantees for loans to MSEs without collateral.
* The scheme is implemented by the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE).
* Details of credit guarantees approved for Tamil Nadu under CGS:
* 2022-23: 61,883 guarantees approved, amounting to ₹7,114 Crore.
* 2023-24: 1,13,815 guarantees approved, amounting to ₹15,061 Crore.
* 2024-25: 1,79,817 guarantees approved, amounting to ₹21,447 Crore.
* 2025-26 (till 31.07.2025): 36,617 guarantees approved, amounting to ₹8,301 Crore.
* **Digitalization and Market Linkage:**
* MSME Trade Enablement and Marketing (MSME TEAM) focuses on onboarding MSMEs onto the ONDC platform.
* The Procurement Marketing Support (PMS) Scheme provides market access to MSEs.
* Number of beneficiaries under PMS Scheme in Tamil Nadu:
* 2022-23: 635 beneficiaries
* 2023-24: 1810 beneficiaries
* 2024-25: 2170 beneficiaries
* 2025-26 (As on 01.08.2025): 282 beneficiaries
* Domestic Trade Fairs Organized:
* Chennai (Tier I): 12
* Coimbatore (Tier II): 5
* Madurai (Tier II): 1
* **Skilling and Technology Upgradation:**
* The Entrepreneurship and Skill Development Programme (ESDP) includes EAP, ESDP, MDP, Advance ESDP, and Advance MDP.
* Number of programmes and beneficiaries in Tamil Nadu:
* 2022-23: 235 programmes, 9433 beneficiaries
* 2023-24: 319 programmes, 16445 beneficiaries
* 2024-25: 363 programmes, 17929 beneficiaries
* Central Footwear Training Institute (CFTI) in Chennai supports the footwear industry through technology services, design, and skilling.
* **Stakeholder Engagement:**
* The Ministry of MSME regularly consults with MSME associations, including those in Tamil Nadu.
* Consultations inform policy formulation and address barriers to growth.
Impact Analysis:
* **MSMEs in Tamil Nadu:**
* *Impact:* Benefit from various central schemes promoting growth, credit access, digitalization, market linkage, skilling, and technology upgrades.
* *Action Required:* Engage with relevant schemes and programmes to leverage available support and participate in consultations to voice concerns and needs.
* **Lending Institutions:**
* *Impact:* Can extend loans to MSEs with credit guarantees provided by CGTMSE, reducing risk.
* *Action Required:* Participate in the Credit Guarantee Scheme and extend loans to MSEs without collateral, adhering to the scheme's guidelines.
* **Ministry of MSME:**
* *Impact:* Responsible for implementing and monitoring the effectiveness of central schemes.
* *Action Required:* Continue to engage with MSME stakeholders, assess the impact of current policies, and formulate new policies based on consultations.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian governmental ministry responsible for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
Tamil Nadu: A state in southern India where specific MSME support and development initiatives are being discussed and implemented.
Prime Minister's Employment Generation Programme: A central scheme by the Government of India for promotion and development and strengthening of the micro, small and medium enterprises.
Credit Guarantee Scheme for Micro and Small Enterprises: A scheme to provide credit guarantee for the loans extended by Member Lending Institutions to Micro and Small Enterprises without collateral security.
Small Industries Development Bank of India: An Indian development finance institution responsible for promotion, financing and development of the micro, small and medium enterprises sector.
Udyam Portal: A government portal for registering MSMEs, including Informal Micro Enterprises.
MSME Trade Enablement and Marketing MSME TEAM: An initiative focused on onboarding MSMEs onto the ONDC platform and supporting in their e-commerce journey.
Central Footwear Training Institute, Chennai, Tamil Nadu: An institution set up with the objective to support the footwear industry by providing technology services, designing and developing moulds and dies, offering consultancy services and skilling.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 3091
TO BE ANSWERED ON 07.08.2025
CENTRAL SCHEMES TO STRENGTHEN MSME
3091. THIRU DAYANIDHI MARAN:
Will the MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Union Government has any targeted central schemes or incentives being offered
to further strengthen the large MSME ecosystem in Tamil Nadu and if so, the details thereof;
(b) whether considering that 70% of Tamil Nadu’s MSMEs are in the services sector and nearly
55% of the urban workforce in the State is engaged in services, significantly higher than the national
average, any specific policy interventions are being planned by the Government to support service-
oriented MSMEs in areas such as trade, motor vehicle repair, education, ICT and financial services
and if so, the details thereof;
(c) whether there are any centrally sponsored credit facilitation, digitalisation, market linkage,
skilling or technology upgradation initiatives specifically tailored for MSMEs in Tamil Nadu's tier-2
and tier-3 cities, where a large proportion of informal MSMEs are concentrated and if so, the details
thereof; and
(d) whether the Government has conducted any studies or consultations with Tamil Nadu-based
MSME associations to understand barriers to growth and if so, the details thereof
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) and (b): The Central Government supplements the efforts of the States/UTs through various
schemes, programmes and policy initiatives for promotion and development and strengthening of the
micro, small and medium enterprises (MSMEs) engaged in the manufacture or production of goods or
providing or rendering of any service or services including in Tamil Nadu. These schemes/ programmes
include Prime Minister's Employment Generation Programme, Credit Guarantee Scheme for Micro and
Small Enterprises, PM Vishwakarma scheme, Entrepreneurship & Skill Development Programme
scheme, Micro and Small Enterprises - Cluster Development Programme, Raising and Accelerating
MSME Performance, MSME Champions Scheme, etc.. The Schemes implemented by Ministry of
MSME are Central Sector Schemes and funds are not allocated state-wise.
6,62,95,529 MSMEs are registered on Udyam Portal, including Informal Micro Enterprises, with
an employment of 28,73,62,479 persons till 31.07.2025. Out of this, 53,44,057 MSMEs are registered in
Tamil Nadu employing 2,78,56,442 persons. Out of this 23,62,573 enterprises are service, 16,28,806
are in Trading and 13,52,678 enterprises are in manufacturing sector.: 2 :
(c): The details of some of the major schemes is as under:
(i) Credit Guarantee Scheme for Micro and Small Enterprises: The Ministry of Micro, Small and
Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly instituted
Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) in the year 2000, to
provide credit guarantee for the loans extended by Member Lending Institutions to Micro and
Small Enterprises (MSEs) without collateral security and third-party guarantee. CGTMSE
implements the Credit Guarantee Scheme (CGS) for MSEs.
The details of the credit guarantees extended in the last 3 years under CGS in Tamil Nadu, is as
given below:
CGS - Guarantees Approved- Tamil Nadu
Financial Year No. of Guarantees approved Amount approved (in ₹ Crore)
2022-23 61,883 7,114
2023-24 1,13,815 15,061
2024-25 1,79,817 21,447
2025-26 (till
31.07.2025) 36,617 8,301
(ii) Training on digital literacy and e-commerce operations is in-built in the initiatives like MSME
Trade Enablement and Marketing (MSME- TEAM), which focuses on onboarding MSMEs onto
the ONDC platform and supporting in their e-commerce journey, in various places including Tier
II and III cities and rural areas.
(iii) Procurement & Marketing Support (PMS) Scheme extends benefits for providing market access to
Micro & Small Enterprises (MSEs).
No. of beneficiaries under various component of PMS Scheme in Tamil Nadu:
S.
Financial Year No. of Beneficiaries
No.
1. 2022-23 635
2. 2023-24 1810
3. 2024-25 2170
2025-26(As on 01.08.2025)
4. 282: 3 :
No. of Domestic Trade Fairs organized during the last two years:
S. No. Name of the City No. of Domestic Trade Tier I/II/III
Fairs organized
1 Chennai 12 Tier I
2 Coimbatore 5 Tier II
3 Madurai 1 Tier II
(iv) Under the Entrepreneurship and Skill Development Programme (ESDP), several programmes
have been conducted on Entrepreneurship Awareness Programme (EAP), Entrepreneurship cum
Skill Development Programme (E-SDP), Management Development Programme (MDP),
Advance E-SDP and Advance MDP. The number of programmes and beneficiaries in Tamil
Nadu are as follows:
S. No. Financial Year No. of Programmes No. of Beneficiaries
Conducted
1. 2022-23 235 9433
2. 2023-24 319 16445
3. 2024-25 363 17929
(v) The network of Technology Centres / Tool Rooms in the country supports MSMEs in providing
access to advance manufacturing technologies, training & skilling and business consultancy
services to make them competitive. Under Tool Rooms & Technical Institutions (TRs & TIs)
scheme, Central Footwear Training Institute (CFTI), Chennai, Tamil Nadu, is set-up with
objective to support the footwear industry by providing footwear technology services,
designing & developing moulds and dies for the footwear Industry and offering consultancy
services. CFTI also provides skilling to youth to create industry-ready manpower and undertakes
re-skilling of the existing industry workforce as per need of Industry.
(d): Ministry of MSME is regularly engaged with the MSME stakeholders/ associations to
understand the concerns of MSMEs including Tamil Nadu. The outcome of the consultations forms the
basis of the policy formulation for the MSMEs. The MSME Associations are consulted from time to
time for various issues, including the difficulties faced by the MSMEs to understand barriers to growth.
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