Lok Sabha Question No. 1394 (UNSTARRED), answered on 2025-02-13
Subject: Challenges Faced by  MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Vijayakumar Alias Vijay Vasanth, Shri Manickam Tagore B

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

## LOK SABHA UNSTARRED QUESTION NO. 1394 TO BE ANSWERED ON 13.02.2025

## CHALLENGES FACED BY MSMEs

## 1394.   SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH: SHRI MANICKAM TAGORE B:

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

- (a) the  number of  MSMEs benefited from the Credit Guarantee Fund Trust for Micro and Small Enterprises  (CGTMSE)  Scheme  and  the  additional  measures  taken  to  ease  access  to  finance  for MSMEs;
- (b) whether only 20% of MSMEs have adopted advanced technology and if so, the steps taken to support technology upgrades and the budget allocated for this purpose in the current year;
- (c) whether the 50% of MSMEs are facing infrastructure issues such as unreliable power and poor transportation, if so, the plans in place to address these challenges, especially in rural areas;
- (d) whether according to a survey, 70% of MSMEs struggle with marketing and market access, if so, the Government initiatives aimed at helping MSMEs build digital marketing strategies and expand into domestic and international markets; and
- (e) whether 65% of MSMEs are reporting difficulties with tax compliance and labour laws, if so, the reforms being introduced by the Government to simplify the laws?

## ANSWER

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

- (a): A total of 1.04 crore credit guarantees amounting to Rs. 8.34 lakh crore have been extended to Micro  and  Small  Enterprises  (MSEs)  under  Credit  Guarantee  Scheme  (CGS)  being  implemented  by Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE)  since  FY  2000-01  to  FY 2024-25 (till 31.01.2025).

For  uninterrupted  flow  of  credit  and  financial  support  to  the  Micro,  Small  and  Medium Enterprises  (MSME)  sector,  a  series  of  measures  have  been  undertaken,  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 for procurement of Plant & Machinery/ Equipment through institutional credit (bank loan),  CGS for collateral free loans for  MSEs,  collateral  free  loans  upto  Rs  20  Lakh  for  Informal  Micro  Enterprises,  PM  Vishwakarma Yojana, Mudra Loan, etc.

(b): The Ministry of MSME implements 'MSE- Scheme for Promotion and Investment in Circular Economy (SPICE)' and 'MSE- Green Investment Financing for Transformation (GIFT)'. MSE- SPICE scheme encourages recirculation of resources in the MSMEs through the strategies of reducing, reusing and recycling of resources, which includes re-processing waste materials and the Budget Outlay of the scheme  is  Rs  472.50  crore  from  2023-2026.  MSE-  GIFT  scheme  provides  concessional  financial assistance  to  MSEs  for  investments  in  adoption  of  green  technologies  and  practices  and  the  Budget Outlay of the scheme is Rs 478 crore from 2023-2026. Further, MSMEs may avail benefits of existing Tool Rooms/ Technology Centres established by the Ministry of MSME.

(c): As  informed  by  Ministry  of  Power,  Government  of  India  launched  Revamped  Distribution Sector Scheme with the objective of improving the quality and reliability of power supply to consumers through  a  financially  sustainable  and  operationally  efficient  Distribution  Sector.  Further,  to  create  an enabling, inclusive and business friendly environment for industrial growth in the country, Department for Promotion of Industry and Internal trade has taken measures like PM GatiShakti National Master Plan and National Logistics Policy.

(d): The  Government  has  taken  various  measures  to  facilitate  marketing  access  to  MSMEs.  The Ministry  of  MSME  implements  Procurement  and  Marketing  Support  Scheme  for  enhancing  market access of MSEs; International Co-operation Scheme to encourage MSMEs to export their products and facilitates participation in international exhibitions/fairs/buyer-seller meets, etc.; MSME TEAM (Trade Enablement and Marketing) to empower MSMEs with digital tools and guidance to effectively utilize the e-commerce marketplace; and provide reimbursement to new MSEs for Capacity Building of First Time Exporters.

(e): As  informed  by  Central  Board  of  Indirect  Taxes  &  Customs,  Department  of  Revenue,  the Government has undertaken various initiatives / policy measures to encourage MSMEs in the country. No GST Registration is required for supply of goods upto Rs. 40 lakh and supply of services upto Rs. 20 lakh, Composition scheme for Goods/Restaurant Services and Service Providers, Quarterly Returns Monthly Payment scheme, etc.

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