Lok Sabha Question No. 1852 (UNSTARRED), answered on 2025-07-31
Subject: Credit Facilities for MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED  QUESTION NO. 1852 TO BE ANSWERED ON: 31.07.2025

## CREDIT FACILITIES FOR MSMEs

1852. PROF. SOUGATA RAY:

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

- (a) whether the Government is aware that the greatest challenges constraining the growth of Micro, Small and Medium Enterprises (MSMEs) in the country relate to inadequate capital and credit facilities;
- (b) if so, the details of the steps taken to ensure sufficient flow of capital and credit facilities for MSMEs;
- (c) the steps taken to address poor and inadequate infrastructural facilities in the sector;
- (d) whether the Government has taken any steps to address the issue of inadequate access and marketing linkages and if so, the details thereof; and
- (e) the number of MSMEs registered/functioning in the country, State-wise?

## ANSWER

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

(a) and (b): A number of steps have been taken by Government of India to ensure sufficient flow of capital and credit support for MSMEs in the country. Some of them are:

- i. Schemes  such  as  Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small  Enterprises (MSEs),  having  provision  of  collateral  free  loan  up  to  a  limit  of  Rs.  10  crore  (w.e.f. 01.04.2025) to MSEs with guarantee coverage up to 90% for various category of loan.
- ii. Prime Minister's Employment Generation Programme (PMEGP) provides Margin Money subsidy  upto  35%  for  setting  up  of  new  micro  enterprises  in  the  non-farm  sector  with project cost of Rs. 50 lakh and Rs. 20 lakh for Manufacturing and Services enterprises respectively.
- iii. 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.
- iv.   PM Vishwakarma (PMV) Scheme, launched on 17.09.2023 to provide end-to-end support to artisans and craftspeople of 18 traditional trades who work with their hands and tools across the country.
- v. Self Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in those MSMEs, which have the potential and viability to grow and become large units. Under this Fund, there is a provision of Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital Funds.

(c): Ministry  of  MSME  implements  Micro  and  Small  Enterprises  Cluster  Development Programme  (MSE-CDP)  to  provide  infrastructure  facilities  across  the  country.  The  proposals under  the  scheme  are  received  from  the  State/UT  Governments  and  financial  assistance  as Government  of  India  Grant  is  provided  to  establish  Common  Facility  Centers  (CFCs)  in  the existing clusters and establish/up-grade infrastructural facilities in new/existing industrial estates/areas/flatted factory complexes.

(d): The  Government  has  taken  a  number  of  initiatives  to  create  marketing  linkages  in  the country.  Procurement  and  Marketing  Support  (PMSS)  Scheme  extends  benefits  to  MSEs  for gaining  market  access  through  participation  in  Trade  Fairs/  Exhibitions,  Vendor  Development Programmes, adoption of Modern Packaging Technique, e-Commerce platforms, ete.

Under International Cooperation Scheme of the Ministry, financial assistance is provided on  reimbursement  basis  to  the  eligible  Central/State  Government  organizations  and  Industry Associations to facilitate participation of MSMEs in the international exhibitions/fairs/buyer-seller meets held abroad.

Further, Public Procurement Policy for Micro and Small Enterprises Order, 2012, provides an assured market share to Micro and Small Enterprises (MSEs). The Policy (amended in 2018) mandates 25% annual procurement from MSEs by Central Ministries/Departments/Central Public Sector  Enterprises  (CPSEs),  including  4%  from  MSEs  owned  by  SC/ST  and  3%  from  MSEs owned by Women.

MSME Global Mart Portal under National Small Industries Corporation is a business to business (B2B) Portal facilitating online marketing support to Indian Micro, Small and Medium Enterprises.

(e): As per Udyam Registration Portal, the number of MSMEs registered in the country, Statewise is given at Annexure I .

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Annexure I Annexure  referred  in  part  (e)  of  answer  to  Lok  Sabha  Unstarred  Question  no.  1852  on 'Credit Facilities for MSMEs' due for reply on 31.07.2025.

| State/UTs-wise total enterprises registered Under UDYAM&UAPSince 01/07/2020 to 15/07/2025   | State/UTs-wise total enterprises registered Under UDYAM&UAPSince 01/07/2020 to 15/07/2025   | State/UTs-wise total enterprises registered Under UDYAM&UAPSince 01/07/2020 to 15/07/2025   | State/UTs-wise total enterprises registered Under UDYAM&UAPSince 01/07/2020 to 15/07/2025   | State/UTs-wise total enterprises registered Under UDYAM&UAPSince 01/07/2020 to 15/07/2025   | State/UTs-wise total enterprises registered Under UDYAM&UAPSince 01/07/2020 to 15/07/2025   |
|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
| Sl. No.                                                                                     | State/UTs                                                                                   | Micro                                                                                       | Small                                                                                       | Medium                                                                                      | Total                                                                                       |
| 1                                                                                           | Andaman And Nicobar Islands                                                                 | 19,261                                                                                      | 157                                                                                         | 3                                                                                           | 19,421                                                                                      |
| 2                                                                                           | Andhra Pradesh                                                                              | 33,60,676                                                                                   | 16,491                                                                                      | 942                                                                                         | 33,78,109                                                                                   |
| 3                                                                                           | Arunachal Pradesh                                                                           | 39,037                                                                                      | 344                                                                                         | 19                                                                                          | 39,400                                                                                      |
| 4                                                                                           | Assam                                                                                       | 11,83,889                                                                                   | 6,523                                                                                       | 519                                                                                         | 11,90,931                                                                                   |
| 5                                                                                           | Bihar                                                                                       | 35,73,259                                                                                   | 11,635                                                                                      | 560                                                                                         | 35,85,454                                                                                   |
| 6                                                                                           | Chandigarh                                                                                  | 68,200                                                                                      | 1,247                                                                                       | 124                                                                                         | 69,571                                                                                      |
| 7                                                                                           | Chhattisgarh                                                                                | 11,35,360                                                                                   | 8,198                                                                                       | 701                                                                                         | 11,44,259                                                                                   |
| 8                                                                                           | Delhi                                                                                       | 11,91,761                                                                                   | 27,734                                                                                      | 2,689                                                                                       | 12,22,184                                                                                   |
| 9                                                                                           | Goa                                                                                         | 1,12,106                                                                                    | 1,094                                                                                       | 79                                                                                          | 1,13,279                                                                                    |
| 10                                                                                          | Gujarat                                                                                     | 36,99,208                                                                                   | 53,058                                                                                      | 4,124                                                                                       | 37,56,390                                                                                   |
| 11                                                                                          | Haryana                                                                                     | 16,69,870                                                                                   | 22,580                                                                                      | 1,729                                                                                       | 16,94,179                                                                                   |
| 12                                                                                          | Himachal Pradesh                                                                            | 2,91,899                                                                                    | 2,507                                                                                       | 208                                                                                         | 2,94,614                                                                                    |
| 13                                                                                          | Jammu And Kashmir                                                                           | 7,36,820                                                                                    | 3,162                                                                                       | 203                                                                                         | 7,40,185                                                                                    |
| 14                                                                                          | Jharkhand                                                                                   | 13,17,404                                                                                   | 5,758                                                                                       | 349                                                                                         | 13,23,511                                                                                   |
| 15                                                                                          | Karnataka                                                                                   | 43,32,188                                                                                   | 30,775                                                                                      | 2,238                                                                                       | 43,65,201                                                                                   |
| 16                                                                                          | Kerala                                                                                      | 15,76,019                                                                                   | 12,627                                                                                      | 744                                                                                         | 15,89,390                                                                                   |
| 17                                                                                          | Ladakh                                                                                      | 18,480                                                                                      | 112                                                                                         | 2                                                                                           | 18,594                                                                                      |
| 18                                                                                          | Lakshadweep                                                                                 | 2,208                                                                                       | -                                                                                           | -                                                                                           | 2,208                                                                                       |
| 19                                                                                          | Madhya Pradesh                                                                              | 41,33,259                                                                                   | 19,307                                                                                      | 1,150                                                                                       | 41,53,716                                                                                   |
| 20                                                                                          | Maharashtra                                                                                 | 85,51,716                                                                                   | 72,793                                                                                      | 6,694                                                                                       | 86,31,203                                                                                   |
| 21                                                                                          | Manipur                                                                                     | 1,47,987                                                                                    | 412                                                                                         | 17                                                                                          | 1,48,416                                                                                    |
| 22                                                                                          | Meghalaya                                                                                   | 53,908                                                                                      | 393                                                                                         | 34                                                                                          | 54,335                                                                                      |
| 23                                                                                          | Mizoram                                                                                     | 44,951                                                                                      | 207                                                                                         | 6                                                                                           | 45,164                                                                                      |
| 24                                                                                          | Nagaland                                                                                    | 60,701                                                                                      | 170                                                                                         | 16                                                                                          | 60,887                                                                                      |
| 25                                                                                          | Odisha                                                                                      | 20,44,179                                                                                   | 9,787                                                                                       | 581                                                                                         | 20,54,547                                                                                   |
| 26                                                                                          | Puducherry                                                                                  | 94,030                                                                                      | 654                                                                                         | 62                                                                                          | 94,746                                                                                      |
| 27                                                                                          | Punjab                                                                                      | 18,22,767                                                                                   | 16,546                                                                                      | 1,205                                                                                       | 18,40,518                                                                                   |
| 28                                                                                          | Rajasthan                                                                                   | 37,35,958                                                                                   | 26,543                                                                                      | 1,598                                                                                       | 37,64,099                                                                                   |
| 29                                                                                          | Sikkim                                                                                      | 28,908                                                                                      | 158                                                                                         | 13                                                                                          | 29,079                                                                                      |
| 30                                                                                          | Tamil Nadu                                                                                  | 52,70,701                                                                                   | 38,540                                                                                      | 2,735                                                                                       | 53,11,976                                                                                   |
| 31                                                                                          | Telangana                                                                                   | 25,47,334                                                                                   | 19,604                                                                                      | 1,749                                                                                       | 25,68,687                                                                                   |
| 32                                                                                          | The Dadra And Nagar Haveli And Daman And Diu                                                | 29,903                                                                                      | 901                                                                                         | 132                                                                                         | 30,936                                                                                      |
| 33                                                                                          | Tripura                                                                                     | 2,71,441                                                                                    | 679                                                                                         | 45                                                                                          | 2,72,165                                                                                    |
| 34                                                                                          | Uttar Pradesh                                                                               | 70,62,336                                                                                   | 39,018                                                                                      | 2,475                                                                                       | 71,03,829                                                                                   |
| 35                                                                                          | Uttarakhand                                                                                 | 5,39,209                                                                                    | 3,945                                                                                       | 270                                                                                         | 5,43,424                                                                                    |
| 36                                                                                          | West Bengal                                                                                 | 45,53,732                                                                                   | 23,323                                                                                      | 1,706                                                                                       | 45,78,761                                                                                   |
| Total:-                                                                                     |                                                                                             | 6,53,20,665                                                                                 | 4,76,982                                                                                    | 35,721                                                                                      | 6,58,33,368                                                                                 |

Source: Udyam Registration Portal