#MSMEIndia #CreditGuaranteeScheme #PMEGP #VishwakarmaYojana #SRI_Fund #DigitalMSME #ULI #RBIInitiatives #TReDS #SamadhaanPortal #ODRPortal #EaseOfDoingBusiness
New Delhi – In a significant move to strengthen the backbone of India’s economy—the Micro, Small and Medium Enterprises (MSME) sector—the Government of India has introduced and expanded several key initiatives aimed at easing credit access, enabling timely payments, and fostering entrepreneurship.
The Ministry of Micro, Small and Medium Enterprises, in coordination with the Reserve Bank of India (RBI), has deployed multiple schemes, policy reforms, and digital interventions. These are designed to improve credit flow, resolve payment delays, and reduce bureaucratic inefficiencies that have historically hindered the growth of India’s vast MSME network.
Credit Guarantee Scheme Expanded
One of the key pillars of support is the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs). The government has infused an additional ₹9,000 crore into the Credit Guarantee Fund Trust for MSEs (CGTMSE), which is expected to enable additional credit flow worth ₹2 lakh crore. The guarantee ceiling has also been increased from ₹5 crore to ₹10 crore, effective from April 1, 2025.
Crucially, the scheme offers up to 90% guarantee coverage, significantly lowering risk for lenders and encouraging them to extend more credit to MSEs across various sectors.
PMEGP and Vishwakarma Yojana Empowering Entrepreneurs
The Prime Minister’s Employment Generation Programme (PMEGP) continues to serve as a cornerstone of India’s micro-enterprise development model. It offers margin money subsidy up to 35% for new businesses in the non-farm sector, with project cost caps of ₹50 lakh for manufacturing and ₹20 lakh for service-based enterprises.
In addition, the PM Vishwakarma Scheme, launched in September 2023, focuses on reviving and supporting 18 traditional artisan trades. Beneficiaries under this scheme can avail of loans up to ₹3 lakh, with an interest subvention of 8%, supporting sustainable income generation for craftspeople across rural and semi-urban India.
SRI Fund – Fueling Equity Investment in MSMEs
To support high-potential MSMEs with growth aspirations, the government has operationalized the Self-Reliant India (SRI) Fund, a bold initiative to inject ₹50,000 crore into the sector via equity funding. Of this, ₹10,000 crore is contributed directly by the government, while the remaining ₹40,000 crore is mobilized through private equity and venture capital funds.
This strategic infusion aims to scale up MSMEs that are ready to transition into mid-sized or large enterprises, thus fostering innovation and value creation.
SAMADHAAN and ODR Portals: Timely Payments and Dispute Resolution
To address the persistent problem of delayed payments to MSMEs, the government has enhanced the reach and effectiveness of the SAMADHAAN Portal, launched in 2017. As of 2025, 161 Micro & Small Enterprises Facilitation Councils (MSEFCs) have been established across States and Union Territories to mediate and monitor payment delays.
Further, the recently launched Online Dispute Resolution (ODR) Portal on June 27, 2025, provides a completely digitized platform for resolving payment-related disputes. The portal streamlines the dispute lifecycle—from complaint registration to resolution—reducing the burden on traditional legal channels and speeding up outcomes for small businesses.
TReDS and RBI’s Unified Lending Interface (ULI)
In line with its mission to digitize and democratize finance, the RBI has operationalized the Unified Lending Interface (ULI) to transform how lenders access and process borrower data. ULI simplifies loan applications by reducing documentation, automating verifications, and integrating data flows—allowing lenders to make faster and better-informed decisions.
“ULI is a revolutionary step that reduces approval times, cuts costs, and opens up access to credit for underserved MSMEs,” noted an RBI spokesperson.
Additionally, the Trade Receivables Discounting System (TReDS) continues to facilitate the financing of receivables from large buyers, including government departments and PSUs. The RBI has also reduced the onboarding threshold to ₹250 crore turnover for corporates and CPSEs, widening the base of enterprises obligated to transact via TReDS.
Government’s Vision for MSME-led Growth
The Minister of State for MSMEs, Sushri Shobha Karandlaje, emphasized in the Rajya Sabha that these initiatives collectively aim to empower MSMEs, reduce systemic hurdles, and ensure they remain competitive and resilient in both domestic and global markets.
India’s MSME sector, comprising over 63 million enterprises, employs nearly 120 million people and contributes approximately 30% to the national GDP. The enhanced credit measures, digital reforms, and entrepreneurial support schemes underscore the government’s commitment to enabling these enterprises to thrive.
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