Executive Summary:
This document details the Indian government's support for Micro, Small, and Medium Enterprises (MSMEs) in response to economic slowdown and rising costs. It outlines financial aid, credit schemes, digital support, and programs for skill development, technology upgrades, and market access provided to MSMEs. Key initiatives include the Emergency Credit Line Guarantee Scheme (operational until March 31, 2023) and the Udyam Assist Platform launched on January 11, 2023.
Key Points / Main Content:
Financial Support and Credit Schemes:
* Emergency Credit Line Guarantee Scheme: Provided Rs. 5 lakh crore to support MSMEs, operational until March 31, 2023. Saved approximately 14.6 lakh MSME accounts from NPA classification.
* Credit Guarantee Scheme (CGS) for MSEs: Infused Rs. 9,000 crore to enable an additional credit of Rs. 2.00 lakh crore at a reduced cost.
* Self Reliant India Fund: Provided Rs. 50,000 crore equity infusion.
* Non-tax benefits: Extended for 3 years for MSMEs with upward changes in status.
* Udyam Assist Platform (UAP): Launched on January 11, 2023, to bring Informal Micro Enterprises under the formal ambit for Priority Sector Lending.
* Schemes: Implemented schemes like PMEGP, Special Credit Linked Capital Subsidy Scheme, PM Vishwakarma Yojana, and Mudra Loan.
* Guarantee Coverage: Government enhanced the guarantee coverage under CGS from Rs. 5 Crore to Rs. 10 Crore through Budget Announcement 2025.
Digital Support:
* Udyam Registration Portal (URP): Online platform for registration, allowing MSMEs to link with GeM Platform for government tenders.
* MSME Global Mart Portal: B2B Portal under NSIC to facilitate online marketing for MSMEs.
* PM Vishwakarma Scheme: Incentivizes digital transactions by artisans through cashbacks.
Skill Development, Technology Upgradation, and Market Access:
* Entrepreneurship and Skill Development Programme: Promotes new enterprises and builds capacity of existing MSMEs.
* Technology Centres/Tool Rooms: Provides access to advanced technologies, training, and consultancy services.
* Public Procurement Policy for MSEs Order 2012: Provides assured market share to MSEs.
* Procurement and Marketing Support Scheme: Extends benefits for market access through trade fairs, exhibitions, vendor development, and e-commerce platforms.
MSME Registration and Employment:
* FY 2023-24: 2,48,93,528 MSMEs registered, declaring 7,39,75,638 employment.
* FY 2024-25: 2,06,55,273 MSMEs registered, declaring 8,26,31,494 employment.
Impact Analysis:
MSMEs:
* Impact: Access to financial aid, credit, digital platforms, skill development programs, technology upgrades, and market access opportunities.
* Action Required: Utilize available schemes and platforms for registration, availing credit, participating in government tenders, and enhancing skills and technology.
Government:
* Impact: Strengthened MSME sector, economic growth, and employment generation.
* Action Required: Continue implementing and monitoring support schemes, promoting digital integration, and facilitating skill development initiatives.
Artisans and Craftspeople (Vishwakarmas):
* Impact: Incentives for digital transactions and promotion of digital payments.
* Action Required: Embrace digital payments ecosystem to avail cashbacks and promote a new digital culture.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for formulating policies, promoting and developing the micro, small and medium enterprises sector.
Emergency Credit Line Guarantee Scheme: A scheme launched as part of Aatmanirbhar Bharat Abhiyan to provide financial support to MSMEs and business enterprises by providing guarantee cover to banks to enable them to extend loans.
Aatmanirbhar Bharat Abhiyan: A government of India initiative focused on making India self-reliant through various economic reforms and support measures, particularly for sectors like MSMEs.
Credit Guarantee Scheme for Micro and Small Enterprises MSEs: A scheme by the Ministry of MSME to provide credit guarantee to banks and financial institutions for extending loans to micro and small enterprises.
Credit Guarantee Fund Trust for MSEs: A trust established to implement the Credit Guarantee Scheme for Micro and Small Enterprises, providing guarantees to banks and financial institutions.
Self Reliant India Fund: An equity infusion program to provide capital to MSMEs.
Udyam Assist platform UAP: A platform to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Lending.
PM Vishwakarma Yojana: A scheme to support artisans and craftspeople with skill development, technology upgradation, and market access, including incentivizing digital transactions.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 1928
TO BE ANSWERED ON: 31.07.2025
DIGITAL SUPPORT TO MSMEs
1928. SMT. GENIBEN NAGAJI THAKOR:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has taken any specific measures to support MSMEs affected by
economic slowdown and rising input costs;
(b) if so, the details of financial aid, credit schemes and digital support provided to MSMEs
during the last three years;
(c) whether the Government has launched any programs to promote skill development,
technology upgradation and market access for MSMEs and if so, the details thereof; and
(d) the number of new MSMEs registered and the employment generated through them during
the last two financial years?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) and (b): The Government of India has taken various steps to strengthen and support the
MSMEs affected by economic slowdown and disruptions. Some of these steps are as under:
i. Emergency Credit Line Guarantee Scheme of Rs.5 lakh crore, as part of Aatmanirbhar
Bharat Abhiyan to support eligible MSMEs and business enterprises in meeting their
operational liabilities and restarting their businesses. The Scheme was operational till
31.03.2023. As per a research report dated 23.01.2023 of the State Bank of India on
Emergency Credit Line Guarantee Scheme, almost 14.6 lakh MSME accounts, of which
about 98.3% of the accounts were in the Micro and Small Enterprises categories, were saved
from slipping into Non-Performing Asset (NPA) classification.
ii. Under the Credit Guarantee Scheme(CGS) for Micro and Small Enterprises (MSEs) of
Ministry of MSME, additional corpus fund of Rs. 9,000 crore was infused into the corpus of
Credit Guarantee Fund Trust for MSEs, to enable an additional credit of Rs. 2.00 lakh crore,
at a reduced cost of credit.
iii. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
iv. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
v. Launch of Udyam Assist platform (UAP) on 11.01.2023 to bring Informal Micro Enterprises
under the formal ambit for availing the benefit under Priority Sector Lending.
vi. No global tenders for procurement up to Rs.200 crores.
The Government has taken several other initiatives to provide financial and digital support to
the MSME Sector. For uninterrupted flow of credit, schemes such as Prime Minister's Employment
Generation Programme (PMEGP), Special Credit Linked Capital Subsidy Scheme, PM Vishwakarma
Yojana, Mudra Loan, etc. are implemented. Government enhanced the guarantee coverage under
CGS from Rs. 5 Crore to Rs. 10 Crore through Budget Announcement 2025.: 2 :
Several measures to encourage MSMEs to integrate with digital systems and e-commerce
platforms have been taken. Udyam Registration Portal (URP) is an online Digital Platform for
registration based on self-declaration. Through URP, the MSMEs can link with GeM Platform and
participate in Government Tender. MSME Global Mart Portal under National Small Industries
Corporation is a business to business (B2B) Portal facilitating online marketing support to MSMEs.
PM Vishwakarma Scheme seeks to incentivize digital transactions undertaken by the artisans and
craftspeople through cash-backs to promote a new digital culture among the Vishwakarmas with
regard to embracing digital payments ecosystem.
The details of financial support extended under CGS and PMEGP, during the last three years,
are as given below:
Credit Guarantee Scheme for Micro and Small Enterprises:
FY Number of Guarantee approved Amount approved (₹ Crore)
2022-23 11,65,786 1,04,781
2023-24 17,24,073 2,02,807
2024-25 21,15,275 3,05,507
Prime Minister's Employment Generation Programme:
FY No. of Units Estimated Employment Margin Money Subsidy
Assisted Generated (in crore)
2022-23 85,167 6,81,336 2,722.17
2023-24 89,118 7,12,944 3,093.87
2024-25 59,708 4,77,664 2,202.00
(c): To promote skill development, technology upgradation and market access for MSMEs,
Government has taken the following steps:
Entrepreneurship and Skill Development Programme promotes new enterprises, build
capacity of existing MSMEs and inculcate entrepreneurial culture in the country.
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.
Public Procurement Policy for Micro and Small Enterprises Order 2012 provides an assured
market share to Micro and Small Enterprises (MSEs). Procurement and Marketing Support
Scheme extends benefits to MSEs for market access through participation in Trade Fairs/
Exhibitions, Vendor Development Programmes, adoption of Modern Packaging Technique, e-
Commerce platforms, etc.
(d): As per Udyam Registration Portal, the details of MSMEs registered and the employment
declared during the last two financial years, are given below:
Financial year-wise MSMEs registered and employment declared
FY MSME registered Employment declared
2023-24 2,48,93,528 7,39,75,638
2024-25 2,06,55,273 8,26,31,494
Source: Udyam Registration Portal
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