Executive Summary:
This document presents the Indian government's response to questions in Lok Sabha regarding credit and infrastructural facilities for Micro, Small, and Medium Enterprises (MSMEs). It outlines steps taken to improve capital flow, infrastructure, and market access for MSMEs, including various schemes and policies. The information is current as of July 31, 2025, and includes state-wise registration data up to July 15, 2025.
Key Points / Main Content:
Credit and Capital Support:
* Credit Guarantee Scheme (CGS): Collateral-free loans up to Rs. 10 crore for MSEs, with guarantee coverage up to 90%, effective April 1, 2025.
* Prime Minister's Employment Generation Programme (PMEGP): Margin Money subsidy up to 35% for new micro-enterprises in the non-farm sector (project cost up to Rs. 50 lakh for Manufacturing and Rs. 20 lakh for Services).
* Special Credit Linked Capital Subsidy Scheme: 25% subsidy to SC/ST MSEs for Plant/Machinery/Equipment procurement via institutional finance.
* PM Vishwakarma (PMV) Scheme: Launched September 17, 2023, providing end-to-end support to artisans and craftspeople in 18 traditional trades.
* Self Reliant India (SRI) Fund: Aims to infuse Rs. 50,000 crore as equity funding into high-growth potential MSMEs (Rs. 10,000 crore from GOI and Rs. 40,000 crore through Private Equity/Venture Capital Funds).
Infrastructure Development:
* Micro and Small Enterprises Cluster Development Programme (MSECDP): Implemented by the Ministry of MSME to provide infrastructure facilities across the country.
* Financial assistance: Government of India Grant to establish Common Facility Centers (CFCs) in existing clusters and upgrade infrastructure in industrial areas.
Marketing Linkages:
* Procurement and Marketing Support (PMSS) Scheme: Benefits to MSEs for market access via trade fairs, vendor development, modern packaging, and eCommerce platforms.
* International Cooperation Scheme: Financial assistance for MSME participation in international exhibitions/fairs/buyer-seller meets.
* Public Procurement Policy for Micro and Small Enterprises Order, 2012 (amended in 2018): Mandates 25% annual procurement from MSEs by Central Ministries/Departments/CPSEs, including 4% from SC/ST-owned MSEs and 3% from women-owned MSEs.
* MSME Global Mart Portal (NSIC): B2B portal for online marketing support to Indian MSMEs.
MSME Registration Data:
* As of July 15, 2025, state-wise registration data is available via the Udyam Registration Portal (data provided in Annexure I).
Impact Analysis:
MSMEs:
Impact: Benefit from increased access to credit, capital subsidies, improved infrastructure, and enhanced marketing opportunities, which supports growth and sustainability.
Action Required: Register on the Udyam portal to avail benefits of government schemes and policies. Participate in available programs and schemes to enhance business operations and market reach.
Central Ministries/Departments/CPSEs:
Impact: Required to meet procurement targets from MSEs, especially those owned by SC/ST and women.
Action Required: Ensure compliance with the Public Procurement Policy for MSEs by procuring at least 25% of annual requirements from MSEs, with specific quotas for SC/ST and women-owned enterprises.
State/UT Governments:
Impact: Play a crucial role in proposing and implementing infrastructure development projects under the MSECDP.
Action Required: Submit proposals for establishing CFCs and upgrading infrastructure in industrial areas to the Ministry of MSME. Facilitate the participation of MSMEs in government schemes and marketing initiatives.
Artisans and Craftspeople:
Impact: Benefit from end-to-end support through the PM Vishwakarma Scheme, enhancing their skills and market access.
Action Required: Register under the PM Vishwakarma Scheme to access training, financial assistance, and marketing support.
Financial Institutions:
Impact: Play a key role in providing credit and capital to MSMEs under various government schemes, with reduced risk due to guarantee coverage.
Action Required: Increase lending to MSMEs under the Credit Guarantee Scheme and other relevant programs.
Key Entities Referenced
Micro, Small and Medium Enterprises: Refers to the sector of Micro, Small and Medium Enterprises (MSMEs) which are a key focus of the policy.
Credit Guarantee Scheme CGS for Micro and Small Enterprises MSEs: A scheme providing collateral-free loans up to Rs. 10 crore to MSEs with guarantee coverage up to 90%.
Prime Minister's Employment Generation Programme PMEGP: A program providing margin money subsidy for setting up new micro-enterprises in the non-farm sector.
Special Credit Linked Capital Subsidy Scheme: A scheme providing a 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant/Machinery/Equipment.
PM Vishwakarma PMV Scheme: A scheme launched to provide end-to-end support to artisans and craftspeople of 18 traditional trades.
Self Reliant India SRI Fund: A fund set up to infuse Rs. 50,000 crore as equity funding in MSMEs with growth potential.
Micro and Small Enterprises Cluster Development Programme MSECDP: A program implemented by the Ministry of MSME to provide infrastructure facilities to MSME clusters.
Public Procurement Policy for Micro and Small Enterprises Order, 2012: A policy providing an assured market share to MSEs in public procurement by Central Ministries/Departments/CPSEs.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 1852
TO BE ANSWERED ON: 31.07.2025
CREDIT FACILITIES FOR MSMEs
1852. PROF. SOUGATA RAY:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government is aware that the greatest challenges constraining the growth of
Micro, Small and Medium Enterprises (MSMEs) in the country relate to inadequate capital and
credit facilities;
(b) if so, the details of the steps taken to ensure sufficient flow of capital and credit facilities
for MSMEs;
(c) the steps taken to address poor and inadequate infrastructural facilities in the sector;
(d) whether the Government has taken any steps to address the issue of inadequate access and
marketing linkages and if so, the details thereof; and
(e) the number of MSMEs registered/functioning in the country, State-wise?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) and (b): A number of steps have been taken by Government of India to ensure sufficient
flow of capital and credit support for MSMEs in the country. Some of them are:
i. Schemes such as Credit Guarantee Scheme (CGS) for Micro and Small Enterprises
(MSEs), having provision of collateral free loan up to a limit of Rs. 10 crore (w.e.f.
01.04.2025) to MSEs with guarantee coverage up to 90% for various category of loan.
ii. Prime Minister's Employment Generation Programme (PMEGP) provides Margin Money
subsidy upto 35% for setting up of new micro enterprises in the non-farm sector with
project cost of Rs. 50 lakh and Rs. 20 lakh for Manufacturing and Services enterprises
respectively.
iii. Special Credit Linked Capital Subsidy Scheme with a provision of 25% subsidy to SC/ST
MSEs on institutional finance for procurement of Plant & Machinery/Equipment.
iv. PM Vishwakarma (PMV) Scheme, launched on 17.09.2023 to provide end-to-end support
to artisans and craftspeople of 18 traditional trades who work with their hands and tools
across the country.
v. Self Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding
in those MSMEs, which have the potential and viability to grow and become large units.
Under this Fund, there is a provision of Rs. 10,000 crore from the Government of India
and Rs. 40,000 crore through Private Equity/Venture Capital Funds.: 2 :
(c): Ministry of MSME implements Micro and Small Enterprises Cluster Development
Programme (MSE-CDP) to provide infrastructure facilities across the country. The proposals
under the scheme are received from the State/UT Governments and financial assistance as
Government of India Grant is provided to establish Common Facility Centers (CFCs) in the
existing clusters and establish/up-grade infrastructural facilities in new/existing industrial
estates/areas/flatted factory complexes.
(d): The Government has taken a number of initiatives to create marketing linkages in the
country. Procurement and Marketing Support (PMSS) Scheme extends benefits to MSEs for
gaining market access through participation in Trade Fairs/ Exhibitions, Vendor Development
Programmes, adoption of Modern Packaging Technique, e-Commerce platforms, ete.
Under International Cooperation Scheme of the Ministry, financial assistance is provided
on reimbursement basis to the eligible Central/State Government organizations and Industry
Associations to facilitate participation of MSMEs in the international exhibitions/fairs/buyer-seller
meets held abroad.
Further, Public Procurement Policy for Micro and Small Enterprises Order, 2012, provides
an assured market share to Micro and Small Enterprises (MSEs). The Policy (amended in 2018)
mandates 25% annual procurement from MSEs by Central Ministries/Departments/Central Public
Sector Enterprises (CPSEs), including 4% from MSEs owned by SC/ST and 3% from MSEs
owned by Women.
MSME Global Mart Portal under National Small Industries Corporation is a business to
business (B2B) Portal facilitating online marketing support to Indian Micro, Small and Medium
Enterprises.
(e): As per Udyam Registration Portal, the number of MSMEs registered in the country, State-
wise is given at Annexure I.
*****Annexure I
Annexure referred in part (e) of answer to Lok Sabha Unstarred Question no. 1852 on
“Credit Facilities for MSMEs” due for reply on 31.07.2025.
State/UTs-wise total enterprises registered Under UDYAM & UAP Since 01/07/2020 to 15/07/2025
Sl. No. State/UTs Micro Small Medium Total
1 Andaman And Nicobar Islands 19,261 157 3 19,421
2 Andhra Pradesh 33,60,676 16,491 942 33,78,109
3 Arunachal Pradesh 39,037 344 19 39,400
4 Assam 11,83,889 6,523 519 11,90,931
5 Bihar 35,73,259 11,635 560 35,85,454
6 Chandigarh 68,200 1,247 124 69,571
7 Chhattisgarh 11,35,360 8,198 701 11,44,259
8 Delhi 11,91,761 27,734 2,689 12,22,184
9 Goa 1,12,106 1,094 79 1,13,279
10 Gujarat 36,99,208 53,058 4,124 37,56,390
11 Haryana 16,69,870 22,580 1,729 16,94,179
12 Himachal Pradesh 2,91,899 2,507 208 2,94,614
13 Jammu And Kashmir 7,36,820 3,162 203 7,40,185
14 Jharkhand 13,17,404 5,758 349 13,23,511
15 Karnataka 43,32,188 30,775 2,238 43,65,201
16 Kerala 15,76,019 12,627 744 15,89,390
17 Ladakh 18,480 112 2 18,594
18 Lakshadweep 2,208 - - 2,208
19 Madhya Pradesh 41,33,259 19,307 1,150 41,53,716
20 Maharashtra 85,51,716 72,793 6,694 86,31,203
21 Manipur 1,47,987 412 17 1,48,416
22 Meghalaya 53,908 393 34 54,335
23 Mizoram 44,951 207 6 45,164
24 Nagaland 60,701 170 16 60,887
25 Odisha 20,44,179 9,787 581 20,54,547
26 Puducherry 94,030 654 62 94,746
27 Punjab 18,22,767 16,546 1,205 18,40,518
28 Rajasthan 37,35,958 26,543 1,598 37,64,099
29 Sikkim 28,908 158 13 29,079
30 Tamil Nadu 52,70,701 38,540 2,735 53,11,976
31 Telangana 25,47,334 19,604 1,749 25,68,687
The Dadra And Nagar Haveli And
32 29,903 901 132 30,936
Daman And Diu
33 Tripura 2,71,441 679 45 2,72,165
34 Uttar Pradesh 70,62,336 39,018 2,475 71,03,829
35 Uttarakhand 5,39,209 3,945 270 5,43,424
36 West Bengal 45,53,732 23,323 1,706 45,78,761
Total:- 6,53,20,665 4,76,982 35,721 6,58,33,368
Source: Udyam Registration Portal