Lok Sabha Question No. 5338 (UNSTARRED), answered on 2025-04-03
Subject: Outstanding Credit to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Sribharat Mathukumilli, Shri Lavu Sri Krishna Devarayalu

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

## LOK  SABHA UNSTARRED QUESTION NO. 5338 TO BE ANSWERED ON 03.04.2025

## OUTSTANDING CREDIT TO MSMEs

## 5338. SHRI  LAVU  SRI  KRISHNA  DEVARAYALU: SHRI  SRIBHARAT  MATHUKUMILLI:

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

- (a) the details of registered and unregistered Micro, Small, and Medium Enterprises (MSMEs) across the country, State-wise;
- (b) the data on MSMEs that have applied for working capital loans, including the status of approved and rejected applications, the total credit accessed compared to applications and the current outstanding credit to MSMEs, State-wise;
- (c) whether  the  Government  has  observed  that  limited  access  to  credit  and  payment  delays  are creating significant liquidity constraints for MSMEs;
- (d) if so, the details of these issues along with steps taken to address them;
- (e) whether  the  Government  has  plans  to  protect  MSMEs  from  exploitative  contract  terms  and payment schedules imposed by larger corporations due to their high bargaining power; and
- (f) if so, the details of the measures initiated in this regard?

## ANSWER

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

- (a): As  per  Udyam  Registration  Portal,  the  State-wise  number  of  Micro,  Small,  and  Medium Enterprises (MSMEs) registered are at Annexure I.
- (b): As per Reserve Bank of India (RBI), the total  working capital loan outstanding to  MSMEs by Public and Private Sector Banks as on March, 2024 is ₹ 16,74,231.61 crore. As informed by RBI, the State-wise  credit  outstanding  to  MSMEs  by  Scheduled  Commercial  Banks  during  the  Financial  Year 2023-24 is  at Annexure II.
- (c) to (f): A series of measures have been undertaken for uninterrupted flow of credit and financial support to  the  MSME sectors, which inter-alia include schemes such as  Prime Minister's Employment Generation  Programme  for  setting  up  of  new  micro  enterprises  in  the  non-farm  sector  by  providing Margin  Money  subsidy  on  the  Bank  loan,  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, Credit Guarantee Scheme for collateral free loans for Micro & Small Enterprises, collateral free loans upto Rs 20 Lakh for Informal Micro Enterprises, PM Vishwakarma Yojana, Mudra Loan, etc.

As  per  the    Public  Procurement  Policy  for  Micro  and  Small  Enterprises  Order,  2012,  every Central Ministry/Department/ CPSE will procure a minimum of 25 per cent of the total annual purchase of the goods or services from Micro & Small Enterprises (MSEs).  The steps taken for ensuring effective implementation of the Public Procurement Policy, includes constitution of a grievance cell for redressing grievances  of  MSEs  relating  to  government  procurement,  a  committee  to  review  the  progress  of procurement made by CPSEs from MSEs. The Government of India has taken a number of steps and initiatives  to  ensure  timely  payment  settlements  for  Micro  and  Small  Enterprises  (MSEs)  across  the country. Some of them are as follows:

-  Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006,  Micro  &  Small  Enterprises  Facilitation  Councils  (MSEFCs)  have  been  set  up  in  the States/UTs to deal with cases of delayed payments of the Micro and Small Enterprises (MSEs). So  far,  161  MSEFCs  have  been  set  up  in  the  country  with  more  than  one  MSEFC  in  Delhi, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal.
-  Ministry of MSME launched SAMADHAAN Portal on 30.10.2017 (http://samadhaan.msme.gov.in/MyMSME/MSEFC/ MSEFCWelcomer.aspx.) for monitoring of the outstanding dues to the MSEs from the buyers of goods and services.
-  A  special  sub-portal  has  been  created  within  SAMADHAAN  Portal  on  14.06.2020,  after  the Aatma Nirbhar Bharat announcements, for reporting the dues and monthly payments by Central Ministries/Department/Public Sector Enterprises to MSMEs.
-  Government of India vide notification S.O. 4845(E) dated 07.11.2024 has also instructed CPSEs and all companies with the turnover of Rs. 250 Crore or more to get themselves on-boarded on the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers.
-  Government  of  India  vide  notification  S.O.  1376(E)  dated  25.03.2025  has  directed  that  all companies who get supplies of goods or services from micro and small enterprises and whose payments  to  micro  and  small  enterprise  suppliers  exceed  forty  five  days  from  the  date  of acceptance or the date of deemed acceptance of the goods or services as per the provisions of the said Act, shall submit a half yearly return to the Ministry of Corporate Affairs.
-  Section 43B (h) of the Income-tax Act 1961 provides that any sum payable by the assessee to an MSE beyond the time limit specified in section 15 of the MSMED Act 2006, which cannot be more than 45 days, shall be allowed as a deduction only on actual payment.

*****

Annexure I Annexure  referred  in  part  (a)  of  answer  to  Lok  Sabha  Unstarred  Question  no.  5338  on 'Outstanding Credit to MSMEs' due for reply on 03.04.2025. State Wise Total Enterprises Detail Under Udyam & Udyam Assist Platform Since 01/07/2020 to

## 15/03/2025

| Sl. No.                                                                        | State                                                                          | Micro                                                                          | Small                                                                          | Medium                                                                         | Total                                                                          |
|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| 1                                                                              | Andaman and Nicobar Islands                                                    | 17,855                                                                         | 275                                                                            | 14                                                                             | 18,144                                                                         |
| 2                                                                              | Andhra Pradesh                                                                 | 3,113,513                                                                      | 25,337                                                                         | 2,000                                                                          | 3,140,850                                                                      |
| 3                                                                              | Arunachal Pradesh                                                              | 34,540                                                                         | 416                                                                            | 35                                                                             | 34,991                                                                         |
| 4                                                                              | Assam                                                                          | 1,071,011                                                                      | 10,102                                                                         | 887                                                                            | 1,082,000                                                                      |
| 5                                                                              | Bihar                                                                          | 3,334,405                                                                      | 19,619                                                                         | 1,042                                                                          | 3,355,066                                                                      |
| 6                                                                              | Chandigarh                                                                     | 62,152                                                                         | 2,005                                                                          | 210                                                                            | 64,367                                                                         |
| 7                                                                              | Chhattisgarh                                                                   | 1,050,295                                                                      | 12,193                                                                         | 1,298                                                                          | 1,063,786                                                                      |
| 8                                                                              | Delhi                                                                          | 1,078,412                                                                      | 41,566                                                                         | 5,034                                                                          | 1,125,012                                                                      |
| 9                                                                              | Goa                                                                            | 104,985                                                                        | 1,744                                                                          | 160                                                                            | 106,889                                                                        |
| 10                                                                             | Gujarat                                                                        | 3,403,129                                                                      | 84,195                                                                         | 8,592                                                                          | 3,495,916                                                                      |
| 11                                                                             | Haryana                                                                        | 1,520,364                                                                      | 34,810                                                                         | 3,329                                                                          | 1,558,503                                                                      |
| 12                                                                             | Himachal Pradesh                                                               | 267,653                                                                        | 3,986                                                                          | 449                                                                            | 272,088                                                                        |
| 13                                                                             | Jammu and Kashmir                                                              | 705,479                                                                        | 5,283                                                                          | 361                                                                            | 711,123                                                                        |
| 14                                                                             | Jharkhand                                                                      | 1,235,850                                                                      | 9,078                                                                          | 667                                                                            | 1,245,595                                                                      |
| 15                                                                             | Karnataka                                                                      | 4,045,487                                                                      | 47,254                                                                         | 4,432                                                                          | 4,097,173                                                                      |
| 16                                                                             | Kerala                                                                         | 1,459,795                                                                      | 19,354                                                                         | 1,479                                                                          | 1,480,628                                                                      |
| 17                                                                             | Ladakh                                                                         | 17,314                                                                         | 145                                                                            | 4                                                                              | 17,463                                                                         |
| 18                                                                             | Lakshadweep                                                                    | 2,087                                                                          | 1                                                                              | -                                                                              | 2,088                                                                          |
| 19                                                                             | Madhya Pradesh                                                                 | 3,875,413                                                                      | 30,398                                                                         | 2,310                                                                          | 3,908,121                                                                      |
| 20                                                                             | Maharashtra                                                                    | 7,904,060                                                                      | 108,112                                                                        | 12,472                                                                         | 8,024,644                                                                      |
| 21                                                                             | Manipur                                                                        | 135,461                                                                        | 691                                                                            | 39                                                                             | 136,191                                                                        |
| 22                                                                             | Meghalaya                                                                      | 44,552                                                                         | 507                                                                            | 63                                                                             | 45,122                                                                         |
| 23                                                                             | Mizoram                                                                        | 42,534                                                                         | 211                                                                            | 11                                                                             | 42,756                                                                         |
| 24                                                                             | Nagaland                                                                       | 54,601                                                                         | 252                                                                            | 19                                                                             | 54,872                                                                         |
| 25                                                                             | Odisha                                                                         | 1,918,887                                                                      | 15,116                                                                         | 1,113                                                                          | 1,935,116                                                                      |
| 26                                                                             | Puducherry                                                                     | 88,390                                                                         | 974                                                                            | 128                                                                            | 89,492                                                                         |
| 27                                                                             | Punjab                                                                         | 1,677,425                                                                      | 27,505                                                                         | 2,471                                                                          | 1,707,401                                                                      |
| 28                                                                             | Rajasthan                                                                      | 3,437,035                                                                      | 43,199                                                                         | 3,452                                                                          | 3,483,686                                                                      |
| 29                                                                             | Sikkim                                                                         | 25,859                                                                         | 204                                                                            | 19                                                                             | 26,082                                                                         |
| 30                                                                             | Tamil Nadu                                                                     | 4,898,748                                                                      | 60,443                                                                         | 5,358                                                                          | 4,964,549                                                                      |
| 31                                                                             | Telangana                                                                      | 2,339,575                                                                      | 28,506                                                                         | 3,167                                                                          | 2,371,248                                                                      |
| 32                                                                             | The Dadra and Nagar Haveli &Daman and Diu                                      | 27,411                                                                         | 1,295                                                                          | 237                                                                            | 28,943                                                                         |
| 33                                                                             | Tripura                                                                        | 258,561                                                                        | 1,014                                                                          | 74                                                                             | 259,649                                                                        |
| 34                                                                             | Uttar Pradesh                                                                  | 6,477,132                                                                      | 63,554                                                                         | 4,910                                                                          | 6,545,596                                                                      |
| 35                                                                             | Uttarakhand                                                                    | 496,891                                                                        | 6,427                                                                          | 544                                                                            | 503,862                                                                        |
| 36                                                                             | West Bengal                                                                    | 4,298,224                                                                      | 37,009                                                                         | 3,331                                                                          | 4,338,564                                                                      |
| Total:- 60,525,085 742,780 69,711 61,337,576 Report Dated:- 17/03/2025 12:05PM | Total:- 60,525,085 742,780 69,711 61,337,576 Report Dated:- 17/03/2025 12:05PM | Total:- 60,525,085 742,780 69,711 61,337,576 Report Dated:- 17/03/2025 12:05PM | Total:- 60,525,085 742,780 69,711 61,337,576 Report Dated:- 17/03/2025 12:05PM | Total:- 60,525,085 742,780 69,711 61,337,576 Report Dated:- 17/03/2025 12:05PM | Total:- 60,525,085 742,780 69,711 61,337,576 Report Dated:- 17/03/2025 12:05PM |

Source: Udyam Portal

Annexure  referred  in  part  (b)  of  answer  to  Lok  Sabha  Unstarred  Question  no.  5338  on 'Outstanding Credit to MSMEs' due for reply on 03.04.2025.

## Credit outstanding to MSME Sector by Scheduled Commercial Banks (State-wise) March, 2024

No. of Accounts in lakh, Amount outstanding in ₹ crore

| Sr. No   | State                                 | As on March 31, 2024   | As on March 31, 2024   |
|----------|---------------------------------------|------------------------|------------------------|
| 1        | Andaman &Nicobar                      | No. of A/cs 0.08       | Amt O/s 989.97         |
| 2        | Andhra Pradesh                        | 12.06                  | 1,01,085.90            |
| 3        | Arunachal Pradesh                     | 0.12                   | 1,514.76               |
| 4        | Assam                                 | 3.57                   | 28,729.48              |
| 5        | Bihar                                 | 12.35                  | 51,766.42              |
| 6        | Chandigarh                            | 0.47                   | 14,634.23              |
| 7        | Chhattisgarh                          | 3.94                   | 43,694.34              |
| 8        | Dadra and Nagar Haveli &Daman and Diu | 0.10                   | 2,345.29               |
| 9        | Delhi                                 | 6.95                   | 1,79,638.00            |
| 10       | Goa                                   | 0.56                   | 7,350.41               |
| 11       | Gujarat                               | 11.90                  | 2,51,504.11            |
| 12       | Haryana                               | 6.75                   | 1,22,258.78            |
| 13       | Himachal Pradesh                      | 1.52                   | 16,147.28              |
| 14       | Jammu & Kashmir                       | 3.86                   | 24,036.19              |
| 15       | Jharkhand                             | 6.16                   | 34,398.89              |
| 16       | Karnataka                             | 16.07                  | 1,65,082.73            |
| 17 18    | Kerala Ladakh                         | 11.32 0.09             | 85,221.33 745.13       |
| 19       | Lakshadweep                           | 0.01                   | 625.99                 |
| 20       | Madhya Pradesh                        | 15.14                  | 1,01,220.23            |
| 21       | Maharashtra                           | 29.81                  | 4,25,437.84            |
| 22       | Manipur                               | 0.37                   | 1,534.83               |
| 23       | Meghalaya                             | 0.21                   | 1,834.20               |
| 24       | Mizoram                               | 0.12                   | 851.34                 |
| 25       | Nagaland                              | 0.22                   | 1,268.83               |
| 26       | Odisha                                | 8.82                   | 53,516.04              |
| 27       | Puducherry                            | 0.49                   | 4,082.11               |
| 28       | Punjab                                | 6.48                   | 96,611.66              |
| 29       | Rajasthan                             | 11.03                  | 1,51,219.10            |
| 30       | Sikkim                                | 0.14                   | 1,997.76               |
| 31       | Tamil Nadu                            | 23.50                  | 2,81,696.93            |
| 32       | Telangana                             | 7.52                   | 1,16,962.81            |
| 33       | Tripura                               | 1.02                   | 2,978.15               |
| 34       | Uttarakhand                           | 2.69                   | 26,006.06              |
| 35       | Uttar Pradesh                         | 27.45                  | 1,95,413.75            |
| 36       | West Bengal                           | 24.55                  | 1,31,256.60            |
|          | Total                                 | 257.45                 | 27,25,657.46           |

Source: RBI