Lok Sabha Question No. 3235 (UNSTARRED), answered on 2025-03-20
Subject: Support to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Jugal Kishore, Shri Yaduveer Wadiyar, Shri Vishweshwar Hegde Kageri, Shri Madhavaneni Raghunandan Rao, Shri Dushyant Singh, Shri Jagdambika Pal, Shri Hasmukhbhai Somabhai Patel, Shri Miteshbhai Rameshbhai Patel, Smt. Kamaljeet Sehrawat

## 3235.

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3235 TO BE ANSWERED ON 20.03.2025

## SUPPORT TO MSMEs

SMT. KAMALJEET SEHRAWAT:

SHRI VISHWESHWAR HEGDE KAGERI:

SHRI MITESH PATEL BAKABHAI:

SHRI DUSHYANT SINGH:

SHRI YADUVEER WADIYAR:

SHRI JUGAL KISHORE:

SHRI HASMUKHBHAI SOMABHAI PATEL:

SHRI MADHAVANENI RAGHUNANDAN RAO:

SHRI JAGDAMBIKA PAL:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

(a) the  manner  in  which  the  increase  in  investment  and  turnover  limits  for  MSME  classification impact small businesses and their ability to expand;

(b) the  measures  in  place  to  ensure  that  MSMEs  can  fully  utilize  the  additional  working  capital provided under the revised classification limits;

(c) the long-term vision with the Ministry for sustaining growth in the MSME sector beyond this budget cycle, particularly in light of global economic challenges; and

(d) the additional policy measures can MSMEs expect in the coming years to further ease access to capital and promote business expansion?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a): The increase in the investment and turnover limits for classification will help Micro, Small and Medium Enterprises (MSMEs) achieve greater efficiencies of scale by enabling existing businesses to expand  operations  through  technology  upgrades,  innovation,  and  increased  investment  in  plant, machinery, or equipment, while remaining within the MSME classification and retaining the benefits of existing MSME schemes.

- (b): The  revision  in  the  definition  of  MSMEs  has  been  announced  in  the  Budget  announcement 2025, thereby enhancing the ambit of the MSME sector and enabling more MSMEs to take the benefits of  various  initiatives,  including  Priority  Sector  Lending.  Further,  in  Budget  2025,  measures  like introduction  of  customized  Credit  Cards  with  a  Rs.  5  lakh  limit  for  micro  enterprises  registered  on Udyam portal and an increase in the credit guarantee cover ceiling under the Credit Guarantee Scheme for  Micro  and  Small  Enterprises  from  the  existing  Rs.  5  crore  to  Rs.  10  crore,  leading  to  additional credit of Rs. 1.5 lakh crore in the next 5 years, have been announced.

(c) and (d): For sustaining growth in the MSME sector and providing support, including for business expansion and ease of access to  capital,  a series  of  measures  have  been  undertaken,  which  inter-alia include  schemes  and  programmes  such  as  Prime  Minister's  Employment  Generation  Programme, Special  Credit  Linked  Capital  Subsidy  Scheme,  Credit  Guarantee  Scheme  for  Micro  and  Small Enterprises, PM Vishwakarma, Pradhan Mantri Mudra Yojana, Stand Up India, Self Reliant India, Fund of Funds for Startups, Micro and Small Enterprises-Cluster Development Programme, Entrepreneurship Skill Development Programme, Procurement and Marketing Support Scheme, International Cooperation scheme, Tool Rooms, Technology Centre System Programme,  National  SC/ST  Hub,  MSME Champions, Public Procurement Policy for MSEs, 2012 Order, etc.

Some  additional  policy  measures  for  promotion  and  development  of  MSME  announced  in Budget 2025 include the following:

- (i) For Startups, the guarantee coverage amount increased from Rs.10 crore to Rs. 20 crore.
- (ii) For well-run exporter MSMEs, credit guarantee for term loans up to Rs. 20 crore.
- (iii)   A new Fund of Funds, with expanded scope and a fresh contribution of another Rs. 10,000 crore.
- (iv) A  new  scheme  for  5  lakh  women,  Scheduled  Castes  and  Scheduled  Tribes  first-time entrepreneurs for term loans up to Rs.2 crore during the next 5 years.

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