**Executive Summary**
This document outlines several steps taken by the Government of India to support MSMEs, aiming to address issues, enhance competitiveness, and provide financial and technological assistance. A key initiative is the Emergency Credit Line Guarantee Scheme (ECLGS), which prevented approximately 14.6 lakh MSME accounts from becoming Non-Performing Assets (NPAs). The document also mentions the revised MSME definition criteria, the Udyam Registration process, and the MSME Champions Scheme.
**Key Points / Main Content**
* **Revised MSME Definition:**
* New criteria for defining MSMEs adopted in 2020, further revised effective April 1, 2025.
* **Udyam Registration:**
* Udyam Registration for MSMEs is effective from July 1, 2020, for Ease of Doing Business.
* **Inclusion of Traders:**
* Retail and Wholesale traders are included as MSMEs, effective July 2, 2021.
* **Tax Benefits:**
* Non-tax benefits extended for 3 years in case of upward change in MSME status.
* **Udyam Assist Platform:**
* Launched on January 11, 2023, to bring Informal Micro Enterprises under the formal ambit for Priority Sector Lending.
* **Self Reliant India Fund:**
* Operationalization of Self Reliant India Fund for equity infusion into MSMEs.
* **ECLGS Scheme:**
* Launch of Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for businesses, including MSMEs.
* The Scheme was operational until March 31, 2023.
* Saved almost 14.6 lakh MSME accounts from slipping into non-performing asset classification, with 98.3% of the accounts being in the Micro and Small Enterprises categories.
* **Other Support Measures:**
* Schemes such as Prime Minister's Employment Generation Programme for setting up of new micro enterprises.
* Special Credit Linked Capital Subsidy Scheme with a 25% subsidy to SC/ST MSEs.
* Credit Guarantee Scheme for collateral-free loans for Micro and Small Enterprises.
* Collateral-free loans up to Rs 20 Lakh for Informal Micro Enterprises.
**Impact Analysis**
**MSMEs**
* **Impact:** MSMEs benefit from improved access to finance, technology, and trade support. The ECLGS scheme protected them from becoming NPAs, and various schemes facilitate their growth and competitiveness.
* **Action Required:** MSMEs should leverage the Udyam Registration, Udyam Assist Platform, and various financial schemes to enhance their operations and growth.
**Retail and Wholesale Traders**
* **Impact:** Inclusion as MSMEs enables access to government schemes and support, enhancing business opportunities.
* **Action Required:** Traders should register as MSMEs and explore available schemes and benefits.
**Ministry of Micro, Small & Medium Enterprises**
* **Impact:** Responsible for implementing and managing various schemes and policies to support MSMEs.
* **Action Required:** Continue to monitor the effectiveness of the schemes and make necessary adjustments to improve their impact.
Key Entities Referenced
Emergency Credit Line Guarantee Scheme (ECLGS): A scheme to prevent MSME accounts from becoming Non-Performing Assets by providing guarantee coverage.
MSME Champions Scheme: A scheme to modernize processes, reduce wastage, and sharpen business competitiveness of MSMEs.
Ministry of Micro, Small & Medium Enterprises: The primary ministry responsible for MSME policies.
Udyam Registration: Registration portal for MSMEs to facilitate Ease of Doing Business.
Udyam Assist platform: Platform to bring Informal Micro Enterprises under the formal ambit to avail benefits under Priority Sector Landing.
Ministry of Micro,Small & Medium Enterprises
The Government has taken many steps to
provide financial support and technology and
trade support to MSMEs
Almost 14.6 Lakh MSME accounts saved from slipping into
Non-Performing Asset by Emergency Credit Line Guarantee
Scheme (ECLGS)
MSME Champions Scheme to modernize processes; reduce
wastage and sharpen business competitiveness of MSMEs
प्रव तथ: 08 DEC 2025 1:38PM by PIB Delhi
The Government of India has taken a number of steps to address the issues and challenges pertaining to
the MSME sector in the country. 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.
from 01.04.2025.
ii. Udyam Registration for MSMEs, for Ease of Doing Business 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. 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 adequate financial support and technology and trade support to various MSMEs, including
leather and textile sector, a series of measures have been undertaken, which inter-alia include schemes
such as Prime Minister's Employment Generation Programme for setting up of new micro enterprises in
the non-farm sector by providing Margin Money subsidy on the Bank loan, Special Credit Linked Capital
Subsidy Scheme with a provision of 25% subsidy to SC/ST MSEs on institutional finance for procurement
of Plant & Machinery/ Equipment, Credit Guarantee Scheme for collateral free loans for Micro and Small
Enterprises with a guarantee coverage of upto Rs. 10 crore, collateral free loans upto Rs 20 Lakh for
Informal Micro Enterprises, PM Vishwakarma Yojana, Mudra Loan, etc.MSME Champions Scheme has been formulated with an end objective to modernize the processes, reduce
wastages, sharpen business competitiveness of enterprises, and facilitate their National and Global reach
and excellence. Further, the Ministry of MSME, in order to help the MSMEs to grow technologically and
to enhance their competitiveness, has established Technology Centres (TCs) and Extension Centres (ECs)
across the country. These TCs/ECs provide various services like technology support, skilling, incubation
and consultancy to MSMEs and skill seeker.
This information was given by the Minister of State for Micro, Small and Medium Enterprises (Sushri
Shobha Karandlaje) in a written reply in Rajya Sabha today.
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