Government Expands MSME Schemes and Funding Support

13 Aug 2025 CW Team

The Udyam Registration Portal, launched on 1 July 2020 with revised MSME classification criteria, has reported total employment of 287.3 million from 1 July 2020 to 31 July 2025, including figures from the Udyam Assist Platform. Key measures taken by the Ministry of MSME include:

Ease of Doing Business: Launch of Udyam Registration and Udyam Assist Platform to formalise informal micro enterprises for Priority Sector Lending benefits.
Sector Inclusion: Retail and wholesale traders recognised as MSMEs from 2 July 2021.
Credit Support: Revamped Credit Guarantee Scheme with Rs. 9 billion fund infusion to enable additional credit of Rs. 2 trillion for MSEs and expand employment opportunities.
Skill and Artisan Support: Launch of PM Vishwakarma Scheme on 17 September 2023 to provide comprehensive benefits to traditional artisans and craftspeople in 18 trades.
Equity Infusion: Creation of the Self Reliant India (SRI) Fund with Rs. 500 billion for equity investment in MSMEs with high growth potential.
Collateral-Free Loans: Loans up to Rs. 100 million for MSEs with guarantee coverage up to 90 per cent via the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Receivables Financing: Operation of the Trade Receivables Discounting System (TReDS) to facilitate electronic financing of MSME receivables and reduce payment delays.
PMEGP Expansion: Enhancement of maximum project cost under PMEGP from Rs. 2.5 million to Rs. 5 million for manufacturing, and from Rs. 1 million to Rs. 2 million for services.

These measures, as highlighted by Minister of State for MSMEs Sushri Shobha Karandlaje in the Rajya Sabha, are aimed at driving growth, improving access to finance, enhancing skills, and strengthening the formalisation of the sector.

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The government continues to support the establishment, promotion, and development of Micro, Small and Medium Enterprises (MSMEs) across India through a range of schemes, programmes, and policy initiatives. These include the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Entrepreneurship Skill Development Programme (ESDP), Procurement and Marketing Support Scheme (PMSS), Raising and Accelerating MSME Performance (RAMP), International Cooperation scheme, Tool Rooms, Technology Centre System Programme (TCSP), National SC/ST Hub (NSSH), MSME Champions, and PM Vishwakarma, among others.The Udyam Registration Portal, launched on 1 July 2020 with revised MSME classification criteria, has reported total employment of 287.3 million from 1 July 2020 to 31 July 2025, including figures from the Udyam Assist Platform. Key measures taken by the Ministry of MSME include:Ease of Doing Business: Launch of Udyam Registration and Udyam Assist Platform to formalise informal micro enterprises for Priority Sector Lending benefits.Sector Inclusion: Retail and wholesale traders recognised as MSMEs from 2 July 2021.Credit Support: Revamped Credit Guarantee Scheme with Rs. 9 billion fund infusion to enable additional credit of Rs. 2 trillion for MSEs and expand employment opportunities.Skill and Artisan Support: Launch of PM Vishwakarma Scheme on 17 September 2023 to provide comprehensive benefits to traditional artisans and craftspeople in 18 trades.Equity Infusion: Creation of the Self Reliant India (SRI) Fund with Rs. 500 billion for equity investment in MSMEs with high growth potential.Collateral-Free Loans: Loans up to Rs. 100 million for MSEs with guarantee coverage up to 90 per cent via the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).Receivables Financing: Operation of the Trade Receivables Discounting System (TReDS) to facilitate electronic financing of MSME receivables and reduce payment delays.PMEGP Expansion: Enhancement of maximum project cost under PMEGP from Rs. 2.5 million to Rs. 5 million for manufacturing, and from Rs. 1 million to Rs. 2 million for services.These measures, as highlighted by Minister of State for MSMEs Sushri Shobha Karandlaje in the Rajya Sabha, are aimed at driving growth, improving access to finance, enhancing skills, and strengthening the formalisation of the sector.

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