Parliament Question: Support to MSMEs affected by Economic Disruptions

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 6237 TO BE ANSWERED ON 02.04.2026 SUPPORT TO MSMES AFFECTED BY ECONOMIC DISRUPTIONS 6237. SHRI SANJAY UTTAMRAO DESHMUKH: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) whether the Government maintains updated information regarding the performance of Micro, Small and Medium and Enterprises (MSMEs) clusters and their role in generating employment and if so, the details thereof; and (b) the details of the support being provided to MSMEs affected by economic disruptions or global supply chain challenges? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a) and (b): Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) of Ministry of Micro, Small and Medium Enterprises, Government of India provide financial support to establish Common Facility Centers (CFCs) and create/upgrade Infrastructure Facilities in new/existing Industrial Area/Estates/Flatted Factory Complex in the existing cluster to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs). MSE-CDP is a demand driven Central Sector Scheme wherein, State Governments send proposals as per common needs of existing cluster in their States/UTs. Total 606 (242 CFCs and 364 ID) Projects have been approved under the scheme which commonly result in enhanced employment. The Ministry of Micro, Small and Medium Enterprises has established 65 Export Facilitation Centers (EFCs) in its field offices across the country with the aim to provide requisite mentoring and handholding support to MSMEs in exporting their products and services which inter alia includes guiding the MSME exporters in resolving any global supply chain challenges. The Ministry has launched Trade Enablement and Marketing (TEAM) scheme which aims at facilitating Micro and Small Enterprises for onboarding onto Open Network for Digital Commerce (ONDC) by providing financial assistance to Seller Network participants (SNPs) for onboarding, cataloguing, account management, logistics, packaging material and design. Notably, half of these beneficiary MSMEs will be women-owned enterprises. The Government has approved the Scheme for Export Promotion Mission (EPM) for the period FY 2025–26 to FY 2030–31, aimed at strengthening India’s export competitiveness, particularly for MSMEs. The EPM shall operate through two integrated sub-schemes:  NIRYAT PROTSAHAN, focused on improving access to trade finance through instruments such as interest subvention, export factoring, collateral guarantees for export credit, credit for e-commerce exporters, and credit enhancement support; and: 2 :  NIRYAT DISHA, focused on other trade enablers such as export quality and compliance support, international branding and packaging, market access initiatives, export logistics & warehousing, and trade intelligence. The Government has approved RELIEF (Resilience & Logistics Intervention for Export Facilitation) under Export Promotion Mission to support exporters amid West Asia logistics disruptions financial outlay of Rs. 497 crores. The RELIEF intervention comprises the following components:  First, exporters who have already obtained ECGC credit insurance cover for eligible consignments will benefit from upto 100% risk coverage, over and above the existing ECGC cover, during the eligible period (February 14, 2026 till March 15, 2026), thereby ensuring enhanced protection without additional financial burden.  Second, exporters planning upcoming consignments, during the next three months (March 16, 2026 till June 15, 2026), will be encouraged to obtain ECGC cover with Government support for upto 95% risk coverage, over and above the existing ECGC cover, which will help sustain exporter confidence and facilitate continued shipment flows despite logistics uncertainties.  Third, recognising that some MSME exporters may not have availed credit insurance (February 14, 2026 till March 15, 2026), but are facing extraordinary freight and insurance surcharge burdens, RELIEF includes a partial reimbursement (upto 50%) mechanism for eligible non-ECGC-insured MSME exporters. This support will be extended subject to prescribed conditions, documentary verification and notified ceilings (upto Rs. 50 lakhs per exporter), and is intended to provide timely relief against conflict-related logistics cost escalation. ******