Parliament Question: Issues concerning MSMEs

**Executive Summary** This document is the answer to an unstarred question in Lok Sabha, number 864, answered on December 4, 2025, concerning issues faced by Micro, Small, and Medium Enterprises (MSMEs). It outlines the measures taken by the Government of India to address the concerns of MSMEs, particularly in improving access to finance. It highlights various initiatives including credit guarantee schemes and equity funding. **Key Points / Main Content** * **Government Initiatives for MSMEs:** * The Government continuously consults with stakeholders for policy-making in the MSME sector. * The Government has taken several initiatives to support MSMEs in improving access to finance. * **Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE):** * The Ministry of Micro, Small and Medium Enterprises and SIDBI jointly established CGTMSE in 2000. * CGTMSE provides credit guarantees for loans extended by Member Lending Institutions (MLIs) to MSEs without requiring collateral security or third-party guarantees. * The guarantee ceiling has been increased from Rs. 5 crore to Rs. 10 crore. * **Prime Minister's Employment Generation Programme:** * Provides Margin Money subsidy up to 35% for setting up new micro enterprises in the non-farm sector. * The project cost is Rs. 50 lakh for Manufacturing enterprises and Rs. 20 lakh for Services enterprises. * **PM Vishwakarma:** * Launched on September 17, 2023, to provide end-to-end support to artisans and craftspeople of 18 traditional trades. * The scheme includes provision of loans up to Rs. 3 lakh with an interest subvention of a maximum of 8%. * **Self Reliant India (SRI) Fund:** * Set up to infuse Rs. 50,000 crores as equity funding in MSMEs. * Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital Funds. * **Additional Measures:** * Collateral-free credit to MSEs. * Implementation of Trade Receivables Discounting System (TReDS). * MutualCreditGuaranteeScheme for projects requiring loans up to Rs 100 crore. * Reduction in timelines for credit decisions by banks. **Impact Analysis** **MSMEs** * **Impact:** Improved access to finance through credit guarantees, subsidies, equity funding, and reduced credit decision timelines. * **Action Required:** MSMEs should familiarize themselves with the various schemes and initiatives offered by the government and SIDBI to leverage financial support and improve their operations. **Member Lending Institutions (MLIs)** * **Impact:** Increased opportunity to extend loans to MSEs with reduced risk due to credit guarantees. * **Action Required:** MLIs should actively participate in the CGTMSE scheme and promote it among potential MSE borrowers. **Artisans and Craftspeople** * **Impact:** Holistic support through the PM Vishwakarma scheme, including access to loans with interest subvention. * **Action Required:** Artisans and craftspeople should apply for loans and assistance under the PM Vishwakarma scheme to enhance their businesses.

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