Lok Sabha Question No. 4450 (UNSTARRED), answered on 2025-03-27
Subject: Support to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Pushpendra Saroj

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

## LOK SABHA UNSTARRED QUESTION NO. 4450 TO BE ANSWERED ON 27.03.2025

## SUPPORT TO MSMEs

## 4450. SHRI PUSHPENDRA SAROJ:

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

- (a) the crucial role of MSMEs in employment generation and economic growth;
- (b) the  specific  initiatives  being  undertaken  by  the  Government  to  support  small  and  medium enterprises in rural and semi urban areas particularly in the district like Kaushambi; and
- (c) the  manner  in  which  the  Government  ensures  access  to  credit,  technological  upgradation  and market linkage to MSMEs to make them competitive in both domestic and international market?

## ANSWER

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

- (a): A revised definition based on the twin criteria of investment and turnover, was adopted to define Micro,  Small  and  Medium  Enterprises  (MSMEs)  in  2020  and  for  registration,  Udyam  Registration Portal  (URP)  was  launched  on  01.07.2020.  On  11.01.2023,  Udyam  Assist  Platform  (UAP)  was launched for informal micro enterprises which are exempted from GST filing. As per the Data for 202223, the MSME sector contributed 30.1% to GDP and 36% to Manufacturing output. Further, as per the Data for 2023-24, the MSME sector contributed 45% to Exports.

The  details  of  year-wise  growth  in  MSME  registration  and  employment  reported  are  given below:

| Year-wise Growth in MSMERegistration on URP including UAP and Employment reported from 01.07.2020 to 15.03.2025   | Year-wise Growth in MSMERegistration on URP including UAP and Employment reported from 01.07.2020 to 15.03.2025   | Year-wise Growth in MSMERegistration on URP including UAP and Employment reported from 01.07.2020 to 15.03.2025   | Year-wise Growth in MSMERegistration on URP including UAP and Employment reported from 01.07.2020 to 15.03.2025   | Year-wise Growth in MSMERegistration on URP including UAP and Employment reported from 01.07.2020 to 15.03.2025   | Year-wise Growth in MSMERegistration on URP including UAP and Employment reported from 01.07.2020 to 15.03.2025   |
|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   | As on 31.03.2021                                                                                                  | As on 31.03.2022                                                                                                  | As on 31.03.2023                                                                                                  | As on 31.03.2024                                                                                                  | As on 15.03.2025                                                                                                  |
| Total Registration                                                                                                | 28,29,746                                                                                                         | 79,52,575                                                                                                         | 1,64,99,727                                                                                                       | 4,13,93,255                                                                                                       | 6,13,37,576                                                                                                       |
| Employment Reported                                                                                               | 2,73,18,171                                                                                                       | 6,22,03,234                                                                                                       | 10,77,91,936                                                                                                      | 18,17,67,574                                                                                                      | 26,09,22,301                                                                                                      |

- (b) and (c): The Central Government supplements the efforts of the State/UT Government through various  schemes,  programmes  and  policy  initiatives  in  rural  and  semi  urban  areas  of  the  country, including  Kaushambi  district.  To  support  and  strengthen  the  MSMEs  Sector,  the  Government implements various measures, which, inter-alia, include measures to provide access to credit support, technological upgradation and market linkage to make them competitive.

- (i) Under Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs), collateral free loan up to a limit of Rs. 500 lakh (w.e.f. 01.04.2023) to MSEs with guarantee coverage up to 90 % for various categories of loan is provided. The details of the number of guarantees provided and the amount of guarantees approved for Micro and Small Enterprises are given below:

| Duration                                    | 2000-01 to 2019- 2020   | 2020-2021 to 2024- 2025   |
|---------------------------------------------|-------------------------|---------------------------|
| Number of Guarantees Approved               | 43,53,591               | 64,81,482                 |
| Amount of Guarantees Approved (In Rs crore) | 2,28,704                | 6,55,987                  |

For  providing  ease  of  access  to  credit,  in  addition  to  CGS,  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, PM Vishwakarma Yojana, Pradhan Mantri Mudra Yojana, etc., are implemented.

- (ii) The network of Technology Centres / Tool Rooms in the country supports MSMEs in providing access  to  advance  manufacturing  technologies,  training  &  skilling  and  business  consultancy services to make them competitive. ZED 2.0 Scheme has been launched for improved efficacy of certification levels and for enhancing quality and competitiveness. To digitally empower MSEs, the Trade Enablement and Marketing Scheme has been launched.
- (iii) Public  Procurement  Policy  for  Micro  and  Small  Enterprises  Order  2012  provides  an  assured market share to MSEs. Procurement and Marketing Support Scheme (PMSS) extends benefits to MSEs for market access through participation in Trade Fairs/ Exhibitions, Vendor Development Programmes, adoption of Modern Packaging Technique, e-Commerce platforms, etc.

Under International Cooperation (IC) Scheme, 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 and for organizing international conference/seminar/workshops in the country. In August, 2021, in order to capacity build MSMEs to enter the export market,  two new components viz. 'Capacity Building of First Time Exporters' and 'Framework for International Market Intelligence Dissemination' have been added in the Scheme.

In addition, in Union Budget 2025, a numbers of measures for MSMEs have been announced. Some of these measures are as under:

-  Guarantee coverage for Micro and Small Enterprises, enhanced from Rs. 5 crore to Rs.10 crore,
-  For well-run exporter MSMEs, credit guarantee for term loans up to Rs. 20 crore.
-  For Startups, the guarantee coverage amount increased from Rs.10 crore to Rs. 20 crore.
-  A new Fund of Funds, with expanded scope and a fresh contribution of another Rs.10,000 crore.
-  A new scheme for women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs for term loans up to Rs.2 crore.

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