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GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 3402
TO BE ANSWERED ON: 12.03.2026
SUPPORT TO RURAL AND SEMI-URBAN MSMEs
3402. SHRI ZIA UR REHMAN:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has taken note of the challenges faced by Micro, Small and Medium
Enterprises (MSMEs) regarding credit access, high interest rates and delayed payments and if so, the
details thereof;
(b) the details of initiatives undertaken to increase formal credit availability and digital onboarding
of small enterprises; and
(c) whether any new interventions are proposed to support rural and semi-urban MSMEs, including
artisans and micro-manufacturers and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): The Government has, inter-alia, undertaken the following measures at the policy level to
enhance and strengthen the Micro, Small and Medium Enterprises ecosystem in the country, including
Rural and Semi-Urban MSMEs:
i. Ministry of MSME implements Credit Guarantee Scheme (CGS) for Micro and Small Enterprises
(MSEs) through Credit Guarantee Fund Trust for Micro and Small Enterprises to provide credit
guarantee for loans extended to MSEs. The ceiling for guarantee coverage under the scheme is Rs
10 crore.
ii. Self-Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in
MSMEs with a provision of Rs. 10,000 crore from the Government of India and Rs. 40,000 crore
through Private Equity/Venture Capital Funds. The Budget 2026-27 has also announced a support
of Rs 2000 crore to top up the Self-Reliant India Fund set up in 2021 to continue support to micro
enterprises and maintain their access to risk capital.
iii. The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May, 2020 as part of
Aatmanirbhar Bharat Package to support eligible MSMEs and business enterprises in meeting
their operational liabilities due to disruption caused by COVID-19 pandemic. The Scheme was
operational till 31.03.2023. As reported by Department of Financial Services, under ECLGS,
since inception till 31.03.2023, total 1.13 crore guarantees covering a value of Rs.2.42 lakh crore
have been extended to MSMEs.: 2 :
iv. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 under Section 15–23
of Chapter V mandates payment to the MSEs to be made within 45 days. Under the provisions of
the MSMED Act, 2006, Micro & Small Enterprises Facilitation Councils (MSEFCs) have been
set up in the States/UTs to deal with cases of delayed payments of the MSEs. For filing and
monitoring the pending payment cases by MSEs against the buyers of goods and services, the
Government launched SAMADHAAN Portal on 30.10.2017. The cases filed on the portal are
referred to the concerned MSEFC for resolution of dispute between the MSE seller and the buyer.
v. Retail and wholesale traders have also been included under the MSME category for the purpose
of Priority Sector Lending (PSL) with effect from 02.07.2021. To bring Informal Micro
Enterprises (IMEs) into the formal financial framework and enable them to avail PSL benefits, the
Udyam Assist Platform was launched on 11.01.2023. The Government has further extended non-
tax benefits for a period of three years in cases of upward transition of MSME classification.
vi. Under the Digital India programme, the Ministry of Electronics and Information Technology
(MeitY) offers services on Digital Infrastructure as a Utility, Governance and Services on
Demand, Digital Empowerment of Citizens and MSMEs. Digital payments are also done by
MSMEs through different platforms. In order to improve and increase the integration of above
technologies to help MSMEs for digitalisation across the Country, Ministry of MSME, in
collaboration with stakeholders runs many initiatives, which inter-alia include the Udyam Portal,
MSME Champions Portal, Government e-Marketplace, Trade Receivables Discounting System
(TReDS), MSME Trade Enablement and Marketing Scheme, MSME SAMBANDH, Prime
Minister's Employment Generation Programme (PMEGP) Portal, Khadi and Village Industries
Commission Online, PM Vishwakarma Portal and Online Dispute Resolution portal.
vii. PMEGP provides Margin Money subsidy up to 35%, for setting up of new micro enterprises, in
the non-farm sector with project cost of Rs. 50 lakh for Manufacturing and Rs. 20 lakh for Service
enterprises.
viii. PM Vishwakarma Scheme was launched on 17.09.2023 to provide end-to-end holistic support to
artisans and craftspeople of 18 traditional trades who work with their hands and tools. The
Scheme includes provision of loans up to Rs. 3 lakh with interest subvention up to 8%.
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