Lok Sabha Question No. 3208 (UNSTARRED), answered on 2025-08-07
Subject: Impact of Global and Domestic Economic Conditions on MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Harish Chandra Meena

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

## LOK SABHA UNSTARRED QUESTION No. 3208 TO BE ANSWERED ON 07.08.2025

## IMPACT OF GLOBAL AND DOMESTIC ECONOMIC CONDITIONS ON MSMEs

3208. SHRI HARISH CHANDRA MEENA:

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

- (a) the  number  of  loans  sanctioned  and  the  number  of  beneficiaries  under  the  Prime  Minister's Employment  Generation  Programme  (PMEGP)  during  2022-23,  2023-24  and  2024-25  across  the country including Rajasthan;
- (b) the reasons for the decline in the number of loan sanctioned and beneficiaries in 2024-25;
- (c) whether  any  assessment  has  been  carried  out  regarding  the  impact  of  global  and  domestic economic conditions on MSMEs, if so, the details thereof; and
- (d) the steps taken to facilitate higher credit flow to MSMEs through banks?

## ANSWER

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

- (a): State-wise  number  of  loans  sanctioned  and  number  of  beneficiaries  assisted  under  the  Prime Minister's Employment Generation Programme (PMEGP) during the last three years i.e. FY 2022-23, 2023-24 and 2024-25 across the country including Rajasthan is given at Annexure I .
- (b): Under PMEGP, Banks appraise the projects and take their own credit decision on the basis of viability  of  each  project.  Therefore,  the  final  sanction  and  release  of  loan  is  done  at  the  level  of concerned  Bank. There has been an increase in the average project cost per unit from Rs. 9.83 Lakh in FY 2021-22 to Rs. 12.36 Lakh in FY 2024-25 resulting in higher outgo of margin money subsidy per unit  under the Scheme impacting the number of beneficiaries assisted as per availability of approved Budget.
- (c): An  assessment  has  been  carried  out  by  NITI  Aayog,  in  collaboration  with  the  Institute  for Competitiveness, in the form of a comprehensive report titled 'Enhancing MSMEs Competitiveness in India' addressing the impact of global and domestic economic conditions on the MSME.

- (d): Steps taken by the Government to facilitate higher credit flow to MSMEs through Banks include the following:
- i. In terms of RBI's Master Direction on 'Priority Sector Lending (PSL) - Targets and Classification', all bank loans to MSMEs conforming to the conditions prescribed therein qualify for classification under priority sector lending.
- ii. Scheduled Commercial Banks (SCBs) have been mandated not to accept collateral securityin the case of loans up to Rs. 10 lakh extended to units in MSE category.
- iii. 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  loanare  provided  through  Credit  Guarantee  Fund Trust for Micro and Small Enterprises (CGTMSE) under Credit Guarantee Scheme.
- iv. Launch of Udyam Assist Platform (UAP) to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
- 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.
- vi. The Trade Receivables Discounting System (TReDS) has been set up to facilitate the financing of trade receivables of MSMEs from corporates and other buyers, including government departments and  public  sector  undertakings  (PSUs)  through  multiple  financiers  electronically  to  solve  the problem of delayed payment to MSMEs.
- vii. Enhancement of maximum project cost from Rs. 25 lakh to Rs. 50 lakh for manufacturing sector and  from  Rs.  10  lakh  to  Rs.  20  lakh  for  service  sector  under  Prime  Minister's  Employment Generation programme (PMEGP) thus enhancing the scope of the scheme.

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## ANNEXURE-I

## ANNEXURE-I REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 3208 FOR ANSWER ON 07.08.2025.

State wise number of loans sanctioned and the number of beneficiaries benefitted under PMEGP during 2022-23, 2023-24 and 2024-25 across the country including Rajasthan:

| Sr. No.   |                   | 2022-23                      | 2022-23                        | 2023-24                       | 2023-24                        | 2024-25                       | 2024-25                        |
|-----------|-------------------|------------------------------|--------------------------------|-------------------------------|--------------------------------|-------------------------------|--------------------------------|
| Sr. No.   | State Name        | No. of Loan Sanction by Bank | No. of beneficiaries benefited | No. of Loan sanctio n by bank | No. of beneficiaries benefited | No. of Loan sanctio n by bank | No. of beneficiaries benefited |
| 1         | Andaman Nicobar   | 315                          | 121                            | 340                           | 135                            | 195                           | 61                             |
| 2         | Andhra Pradesh    | 5692                         | 3073                           | 11473                         | 5577                           | 7977                          | 3249                           |
| 3         | Arunachal Pradesh | 250                          | 158                            | 243                           | 169                            | 144                           | 156                            |
| 4         | Assam             | 3897                         | 2596                           | 3734                          | 2417                           | 3236                          | 3170                           |
| 5         | Bihar             | 8119                         | 4459                           | 12013                         | 6837                           | 7715                          | 5035                           |
| 6         | Chandigarh        | 18                           | 15                             | 15                            | 10                             | 15                            | 5                              |
| 7         | Chhattisgarh      | 3900                         | 2543                           | 3510                          | 2379                           | 2951                          | 1853                           |
| 8         | Delhi             | 128                          | 72                             | 81                            | 50                             | 52                            | 26                             |
| 9         | Goa               | 121                          | 66                             | 108                           | 68                             | 67                            | 39                             |
| 10        | Gujarat*          | 4529                         | 3071                           | 4488                          | 3000                           | 2445                          | 1783                           |
| 11        | Haryana           | 2487                         | 1559                           | 2762                          | 1398                           | 1925                          | 788                            |
| 12        | Himachal Pradesh  | 1598                         | 930                            | 2072                          | 974                            | 1256                          | 796                            |
| 13        | Jammu Kashmir     | 26785                        | 12023                          | 25606                         | 15065                          | 17579                         | 9863                           |
| 14        | Jharkhand         | 2719                         | 1851                           | 3551                          | 2101                           | 2047                          | 1452                           |
| 15        | Karnataka         | 8273                         | 5618                           | 7944                          | 4672                           | 6753                          | 2839                           |
| 16        | Kerala            | 6196                         | 3129                           | 6401                          | 3389                           | 5837                          | 2260                           |
| 17        | Ladakh            | 239                          | 91                             | 177                           | 122                            | 136                           | 135                            |
| 18        | Lakshadweep       | 1                            | 2                              | 1                             | 0                              | 2                             | 0                              |
| 19        | Madhya Pradesh    | 9241                         | 5957                           | 7777                          | 5292                           | 835                           | 2626                           |
| 20        | Maharashtra**     | 6159                         | 3625                           | 6131                          | 2766                           | 5159                          | 1857                           |
| 21        | Manipur           | 879                          | 545                            | 740                           | 348                            | 525                           | 608                            |
| 22        | Meghalaya         | 886                          | 306                            | 1217                          | 280                            | 1027                          | 1114                           |
| 23        | Mizoram           | 574                          | 412                            | 414                           | 401                            | 366                           | 484                            |
| 24        | Nagaland          | 1228                         | 469                            | 1320                          | 517                            | 678                           | 1262                           |
| 25        | Odisha            | 5327                         | 3880                           | 5174                          | 2975                           | 4708                          | 1867                           |
| 26        | Puducherry        | 44                           | 25                             | 86                            | 30                             | 72                            | 38                             |
| 27        | Punjab            | 2410                         | 1564                           | 3005                          | 1469                           | 2368                          | 970                            |
| 28        | Rajasthan         | 3161                         | 2037                           | 3781                          | 1678                           | 3319                          | 916                            |
| 29        | Sikkim            | 176                          | 57                             | 608                           | 132                            | 465                           | 316                            |
| 30        | Tamil Nadu        | 11555                        | 6140                           | 16562                         | 6814                           | 12007                         | 3949                           |
| 31        | Telangana         | 4543                         | 2540                           | 5833                          | 2503                           | 3857                          | 1850                           |
| 32        | Tripura           | 1002                         | 703                            | 957                           | 588                            | 720                           | 730                            |
| 33        | Uttar Pradesh     | 19678                        | 11601                          | 19562                         | 11689                          | 7421                          | 5518                           |
| 34        | Uttarakhand       | 2431                         | 1803                           |                               |                                |                               |                                |
|           | West Bengal       |                              |                                | 2176                          | 1354                           | 1056                          | 734                            |
| 35        | Total             | 3044 147605                  | 2126 85167                     | 2903 162765                   | 1919 89118                     | 2571 107486                   | 1359 59708                     |