**Executive Summary**
This document outlines the Indian government's initiatives to promote Ease of Doing Business (EODB) for Micro, Small, and Medium Enterprises (MSMEs). It details revisions to MSME definitions, schemes for financial support, procurement facilitation, and initiatives to assist SC/ST entrepreneurs. The information was provided by the Minister of State for Micro, Small and Medium Enterprises.
**Key Points / Main Content**
* **Revised MSME Definitions:**
* New criteria for defining MSMEs, adopted in 2020 and further revised w.e.f. 01.04.2025, aim to promote upward mobility in technology, skilling, and business growth.
* **Registration and Formalization:**
* Udyam Registration Portal for MSMEs launched w.e.f. 01.07.2020.
* Udyam Assist platform launched on 11.01.2023 to bring Informal Micro Enterprises into the formal sector under Priority Sector Lending.
* **Financial Support & Credit Schemes:**
* Operationalization of Self Reliant India Fund for equity infusion into MSMEs.
* Credit Guarantee Scheme (CGS) provides guarantees to Member Lending Institutions for MSE loans without collateral.
* Additional corpus of Rs. 9,000 crore infused into CGTMSE to enable an additional credit of Rs. 2.00 lakh crore.
* Emergency Credit Line Guarantee Scheme (ECLGS), operational until 31.03.2023, helped prevent MSMEs from becoming non-performing assets.
* Vivad se Vishwas I (VsV-I) Scheme launched on 11.04.2023, provided relief to MSMEs in post-COVID period, including refund of performance security and extension of contract periods.
* **Procurement and Marketing Support:**
* MSME-SAMBANDH Portal launched on 8th December, 2017 to monitor procurement by government entities.
* Government e Marketplace (GeM) used for procurement by Ministries/Departments/CPSEs, with focus on supporting SC/ST and Women entrepreneurs.
* Vendor Development Programmes under the Procurement and Marketing Support Scheme create networking opportunities for MSEs.
* **SC/ST Entrepreneurship:**
* Special Credit Linked Capital Subsidy Scheme (SCLCSS) under National SC-ST Hub Scheme promotes new enterprises and capacity building for SC/ST entrepreneurs.
* **Inclusion of Retail and Wholesale Traders:**
* Retail and Wholesale traders included as MSMEs w.e.f. 02.07.2021.
* **Tax Benefits:**
* Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
**Impact Analysis**
**MSMEs**
* **Impact:** Benefit from revised definitions, increased access to credit and equity, easier registration processes, and greater participation in government procurement.
* **Action Required:** Register on the Udyam portal, leverage available credit schemes, and participate in vendor development programs.
**Central Government Ministries, Departments, and CPSEs**
* **Impact:** Required to actively monitor procurement from MSMEs via the MSME-SAMBANDH Portal and utilize GeM.
* **Action Required:** Monitor procurement activities through the MSME-SAMBANDH portal, and ensure compliance with public procurement policies for MSEs.
**SC/ST Entrepreneurs**
* **Impact:** Benefit from schemes promoting new enterprises and capacity building.
* **Action Required:** Utilize the Special Credit Linked Capital Subsidy Scheme (SCLCSS) and other programs targeted at SC/ST entrepreneurs.
**Lending Institutions**
* **Impact:** Can extend credit to MSEs with guarantees provided by the Credit Guarantee Scheme (CGS).
* **Action Required:** Participate in the CGS scheme to facilitate lending to MSEs without collateral.
Key Entities Referenced
Ministry of Micro, Small & Medium Enterprises: The primary ministry responsible for implementing the policies and schemes discussed in the document.
Ease of Doing Business (EOBD): The overarching goal of the steps outlined in the document, specifically for MSMEs.
Emergency Credit Line Guarantee Scheme (ECLGS): A scheme providing financial assistance to businesses, including MSMEs, during the COVID-19 pandemic.
Vivad se Vishwas I (VsV-I) Scheme: Scheme that aims to provide relief to MSMEs in the post-COVID period.
Special Credit Linked Capital Subsidy Scheme (SCLCSS): Scheme designed to support aspiring SC/ST entrepreneurs in establishing new businesses.
Ministry of Micro,Small & Medium Enterprises
The Government has taken a number of steps to
promote Ease of Doing Business (EOBD) for
MSMEs
Criteria for defining MSMEs revised to create upward mobility
in technology, skilling and business growth
More than 60,000 claims of MSMEs vendors finalised under
the Vivad se Vishwas I (VsV-I) Scheme in post Corona period
MSME-SAMBANDH Portal helps in actively monitoring
procurement by Central Government Ministries, Departments
and Central Public Sector Enterprises (CPSEs)
Special Credit Linked Capital Subsidy Scheme (SCLCSS)
enables aspiring SC/ST entrepreneurs to set up new
enterprises
प्रव तथ: 18 DEC 2025 2:43PM by PIB Delhi
The Government of India has taken a number of steps to promote ease of doing business for Micro, Small
and Medium Enterprises (MSMEs) and provide a conducive environment to them. Some of these steps are
as under:
i. New revised criteria for defining MSMEs adopted in 2020. This has been further revised w.e.f.
01.04.2025, so as to create upward mobility in technology, skilling and business growth and
promote transformation of MSMEs and support their expansion.
ii. Udyam Registration Portal for MSMEs, for Ease of Doing Business, launched w.e.f. 01.07.2020.
iii. Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 02.07.2021.
iv. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
v. Launch of Udyam Assist platform on 11.01.2023 to bring Informal Micro Enterprises under the
formal ambit for availing the benefit under Priority Sector Landing.
vi. Operationalisation of Self Reliant India Fund for equity infusion into MSMEs.
vii. Under Credit Guarantee Scheme (CGS) for Micro and Small Enterprises, guarantee is provided to
Member Lending Institutions for the credit extended by them to MSEs without any collateral
security or third-party guarantee. Additional corpus fund of Rs. 9,000 crore was infused into the
corpus of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), as announced
in the Union Budget 2023-24 to enable an additional credit of Rs. 2.00 lakh crore, at a reduced cost
of credit.Launch of Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), for businesses, including
MSMEs. The Scheme was operational till 31.03.2023. As per a research report dated 23.01.2023 of the
State Bank of India on ECLGS, 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
classification.
To provide relief and support to MSMEs in post Corona period, Vivad se Vishwas I - Relief for MSMEs
(VsV-I) Scheme was launched by Department of Expenditure, Ministry of Finance, Government of India
on 11.04.2023. Under the Scheme, relief by way of refund of 95% of the deducted performance security,
bid security and liquidated damages was provided for Government contracts entered during COVID 19
period. Relief was also provided to MSMEs debarred for default in execution of contracts. More than
60,000 claims of MSMEs vendors were finalised under the scheme. In addition, the delivery period was
extended for all contracts, including PPP contracts by 3 to 6 months without any penalty.
For smooth implementation of the public Procurement Policy for Micro and Small Enterprises (MSEs)
Order, 2012, a number of steps have been taken by the Ministry of MSME, as outlined below:
i. The Ministry of MSME launched “MSME-SAMBANDH Portal” on 8th December, 2017. The
Portal helps in actively monitoring the procurement by Central Government Ministries,
Departments and Central Public Sector Enterprises (CPSEs).
ii. The Ministry of MSME is actively engaged with Department of Public Enterprises, Ministry of
Finance for better coordination with CPSEs for achieving the targets under the Policy. The Ministry
of MSME also issues communications and clarifications on the Public Procurement Policy for
MSEs, whenever required or asked for.
iii. Government e Marketplace (GeM), an online portal, is being used for procurement by Ministries/
Departments/ CPSEs. Follow up with GeM for supporting SC/ST and Women entrepreneurs is done
on a regular basis.
(iv) Vendor Development Programmes under the Procurement and Marketing Support Scheme serve as
platform for MSEs, where MSEs can network with not only CPSEs but with also other stakeholders.
Special Vendor Development Programmes/ Buyer-Seller Meets are being conducted by Departments/
CPSUs for SC/STs and women owned MSEs.
v. Special Credit Linked Capital Subsidy Scheme (SCLCSS) under National SC-ST Hub Scheme
promotes setting up of new enterprises by aspiring SC/ST entrepreneurs and their capacity building
for enhanced participation in public procurement.
This information was given by the Minister of State for Micro, Small and Medium Enterprises (Sushri
Shobha Karandlaje) in a written reply in Lok Sabha today.
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