- A Rs 50,000 crore equity infusion through Self Reliant India Fund has been made for strengthening the MSME sector
- Additional corpus fund of Rs 9,000 crore was infused into the corpus of Credit Guarantee Fund Trust for MSEs, as announced in the Union Budget 2023-24 to enable an additional credit of Rs 2 lakh crore
- the Government revised the definition of MSMEs and enhanced the guarantee coverage under CGS from Rs 5 crore to Rs 10 crore through Budget Announcement 2025
NE BUSINESS BUREAU
AHMEDABAD, JULY 21
The Government on Monday informed the Rajya Sabah that in the last five years, new registrations of 37,56,390 Micro, Small & Medium Enterprises (MSMEs) and 8,779 closures have taken place in Gujarat.
“In the last five years, new registrations of 37,56,390 Micro, Small & Medium Enterprises (MSMEs), and closure of 8,779 have taken place in the state,” Union Minister of State for MSMEs, Sushri Shobha Karandlaje furnished this data in Rajya Sabha on Monday while replying to the question raised by MP Parimal Nathwani.
Nathwani wanted details of the impact of the global economic slowdown on MSMEs in India and the measures taken by the Government to support this sector in these difficult times.
The minister further said, “The Government of India has taken various steps to strengthen and support the MSME sector in view of the global challenges. A Rs 50,000 crore equity infusion through Self Reliant India Fund has been made. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs. No global tenders for procurement up to Rs 200 crore. Launch of the Udyam Assist Platform (UAP) to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Lending.”
“Under the Credit Guarantee Scheme for Micro & Small Enterprises (MSEs) of Ministry of MSME, 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 MSEs, as announced in the Union Budget 2023-24 to enable an additional credit of Rs 2 lakh crore, at a reduced cost of credit,” the statement added.
To further support the MSME Sector, Government of India announced Mutual Credit Guarantee Scheme (CGS) for MSMEs in manufacturing sector and Credit Guarantee Scheme for MSMEs in Special Mention Account (SMA) in Budget 2024. Further, the Government revised the definition of MSMEs and enhanced the guarantee coverage under CGS from Rs 5 crore to Rs 10 crore through Budget Announcement 2025.
