Lok Sabha Question No. 2194 (UNSTARRED), answered on 2026-02-12
Subject: Impact of Global Trade Disruptions on MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. T Sumathy Alias Thamizhachi Thangapandian

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

## LOK SABHA UNSTARRED QUESTION NO. 2194 TO BE ANSWERED ON 12.02.2026

## IMPACT OF GLOBAL TRADE DISRUPTIONS ON MSMEs

## 2194.  DR. T SUMATHY Alias THAMIZHACHI THANGAPANDIAN:

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

- (a) whether  the  Government  has  assessed  the  impact  of  global  trade  disruptions  and  tariff uncertainties on Micro, Small and Medium Enterprises (MSMEs) clusters in Tamil Nadu, particularly in Chennai and Hosur, where nearly thirty lakh jobs are at risk and if so, the details thereof;
- (b) whether any interest subvention, export incentive or special relief package has been approved for MSMEs affected by external factors and recent cyclones and if so, the details thereof;
- (c) whether  it  is  a  fact  that  the  Rupees  95  billion  MSME  financing  plan  for  the  year  2026  has witnessed delays in disbursement to eligible units in Tamil Nadu and if so, the details thereof;
- (d) the details of MSME assistance released during the year 2025-26, State-wise; and
- (e) the steps proposed to stabilise employment and exports in MSME-intensive States like Tamil Nadu?

## ANSWER

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

(a),(b),(d)&(e): India's  merchandise  exports  during  April  to  October  2025  have  demonstrated resilient performance despite challenging global conditions including recent U.S. tariff hike. Overall, merchandise exports for the fiscal year so far remain positive compared to the previous year, reflecting underlying resilience despite global economic volatility, geopolitical disruptions and softened demand in  some  markets.  India's  export  sector  continues  to  demonstrate  strength  and  diversification  amid challenging external conditions.

Government  continues  to  work  to  mitigate  the  impact  of  the  US  tariff  measures  on  Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement with the US  Government  for  a  mutually  beneficial  India-US  Bilateral  Trade  Agreement,  immediate  relief through  Trade  relief  measures  of  RBI,  Credit  Guarantee  Scheme  for  Exporters,  enhancement  of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters, pursuing FTAs with new  countries  and  better  utilization  of  existing  FTA.  It  is  expected  that  these  measures  will  also enhance diversification and resilience in India's trade relationships.  The Government remains engaged with  all  stakeholders-including  exporters,  Export  Promotion  Councils  (EPCs),  MSMEs,  industry associations, and state governments-to assess the evolving impact of the U.S. tariff measures.

Export  Promotion  Mission  (EPM)  has  been  approved  on  12.11.2025  as  a  comprehensive framework to strengthen the overall export ecosystem. Under EPM, support shall be provided through NIRYAT  PROTSAHAN,  which  focuses  on  trade  finance  facilitation  including  support  for  interest subvention, factoring, E-Commerce Credit Card, Collateral for export Credit etc. for MSME exporters, and  NIRYAT  DISHA,  which  shall  provide  non-financial  support  including  export-quality  and compliance  assistance, market-access  interventions,  logistics  facilitation,  and  export  ecosystembuilding measures.

The Central Government supplements the efforts of the State/UT Governments through various schemes,  programmes  and  policy  initiatives  for  credit,  skill  development,  infrastructure  and  cluster development etc. This inter  alia  includes  initiatives  for  providing  financial  assistance,  credit  support and technology adoption through Schemes like Prime Minister's Employment Generation Programme (PMEGP), Credit Guarantee Scheme (CGS) for Micro & Small Enterprises (MSEs), Self Reliant India (SRI) Fund, Micro & Small Enterprises Cluster Development Programme (MSE-CDP), Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) etc.

- (i) Prime  Minister's  Employment  Generation  Programme  (PMEGP)  assists  General  Category beneficiaries with Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs,  Minorities, Women,    Ex-servicemen,  Physically Handicapped, Transgenders,  beneficiaries  belonging  to  Northeastern  Region,  Hill  and  Border  areas,  and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas.
- (ii) Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small  Enterprises  (MSEs)  through  Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee of upto Rs. 10 crore.
- (iii)  Self  Reliant  India  (SRI)  Fund  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 scheme total size of fund of Rs. 50,000 crore has a provision of Rs.10,000 crore from Government of India and Rs.40,000 crore through Private Equity / Venture Capital funds. This initiative is aimed at providing growth capital to the deserving and eligible units of MSME sector. The Budget 202627 has also announced a support of Rs 2000 crore to top up the Self-Reliant India Fund set up in 2021 to continue support to micro enterprises and maintain their access to risk capital.
- (iv) Micro and Small Enterprises Cluster Development Programme (MSE-CDP) with the objective to enhance  the  productivity  and  competitiveness  of  Micro  and  Small  Enterprises  (MSEs)  by extending  financial  assistance  for  establishment  of  Common  Facility  Centers  (CFCs)  and creation  and  up-gradation  of  industrial  estates.  Establishment  of  Flatted  Factory  Complexes  is also  supported  under  the  scheme.  For  CFCs,  Government  of  India  Grant  is  up  to  80%,  upper limit of Project cost is Rs. 30 crore whereas, for ID projects Government of India Grant is up to 70%, upper limit of Project is Rs. 15 crore.
- (v).   Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), a government-backed initiative designed to  help  Micro,  Small,  and  Medium  Enterprises  (MSMEs)  access  loans  to  grow  their businesses. This scheme offers a credit guarantee, making it easier for MSMEs to obtain loans, especially  for  purchasing  essential  equipment  and  machinery.  The  Scheme  provides  credit guarantee  cover  to  lenders  (Scheduled  Commercial  Banks,  All  India  Financial  Institutions, NBFCs) for their term loans up to Rs.100 crore to MSMEs for their projects involving purchase of equipment/machinery.

## (i) Credit Guarantee Scheme for Micro and Small Enterprises

Ministry  of  MSME  implements  Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small  Enterprises (MSEs) through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee for loans extended to MSEs. The ceiling for guarantee coverage under the scheme is Rs 10 crore.

State/UT wise details for credit guarantees extended to MSEs under CGS are as under:

| CGS - Guarantees approved- FY 2025-26 till 31.01.2026   | CGS - Guarantees approved- FY 2025-26 till 31.01.2026   | CGS - Guarantees approved- FY 2025-26 till 31.01.2026   | CGS - Guarantees approved- FY 2025-26 till 31.01.2026   |
|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| Sr. No.                                                 | States / UTs                                            | No. of guarantees approved                              | Amount approved (in Rs. crore)                          |
| 1                                                       | Andaman and Nicobar Islands                             | 784                                                     | 159                                                     |
| 2                                                       | Andhra Pradesh                                          | 1,08,511                                                | 11,030                                                  |
| 3                                                       | Arunachal Pradesh                                       | 1,555                                                   | 476                                                     |
| 4                                                       | Assam                                                   | 37,868                                                  | 6,389                                                   |
| 5                                                       | Bihar                                                   | 1,33,308                                                | 12,965                                                  |
| 6                                                       | Chandigarh                                              | 6,190                                                   | 1,555                                                   |
| 7                                                       | Chhattisgarh                                            | 29,736                                                  | 4,984                                                   |
| 8                                                       | Delhi                                                   | 47,529                                                  | 14,258                                                  |
| 9                                                       | Goa                                                     | 3,762                                                   | 749                                                     |
| 10                                                      | Gujarat                                                 | 95,972                                                  | 30,626                                                  |
| 11                                                      | Haryana                                                 | 58,598                                                  | 12,219                                                  |
| 12                                                      | Himachal Pradesh                                        | 22,625                                                  | 2,649                                                   |
| 13                                                      | Jammu And Kashmir                                       | 38,091                                                  | 2,900                                                   |
| 14                                                      | Jharkhand                                               | 48,786                                                  | 6,537                                                   |
| 15                                                      | Karnataka                                               | 1,19,785                                                | 22,436                                                  |
| 16                                                      | Kerala                                                  | 59,937                                                  | 8,882                                                   |
| 17                                                      | Ladakh                                                  | 494                                                     | 101                                                     |
| 18                                                      | Lakshadweep                                             | 47                                                      | 2                                                       |
| 19                                                      | Madhya Pradesh                                          | 85,966                                                  | 14,735                                                  |
| 20                                                      | Maharashtra                                             | 1,98,036                                                | 46,554                                                  |
| 21                                                      | Manipur                                                 | 2,132                                                   | 251                                                     |
| 22                                                      | Meghalaya                                               | 2,347                                                   | 416                                                     |
| 23                                                      | Mizoram                                                 | 1,694                                                   | 194                                                     |
| 24                                                      | Nagaland                                                | 1,535                                                   | 229                                                     |
| 25                                                      | Odisha                                                  | 66,545                                                  | 10,755                                                  |
| 26                                                      | Puducherry                                              | 2,487                                                   | 380                                                     |
| 27                                                      | Punjab                                                  | 64,722                                                  | 10,551                                                  |
| 28                                                      | Rajasthan                                               | 98,300                                                  | 16,183                                                  |
| 29                                                      | Sikkim                                                  | 1,115                                                   | 176                                                     |
| 30                                                      | Tamil Nadu                                              | 1,22,789                                                | 23,606                                                  |
| 31                                                      | Telangana                                               | 72,898                                                  | 14,333                                                  |
| 32                                                      | The Dadra and Nagar Haveli and Daman and Diu            | 1,102                                                   | 367                                                     |
| 33                                                      | Tripura                                                 | 9,240                                                   | 764                                                     |
| 34                                                      | Uttar Pradesh                                           | 4,45,336                                                | 37,211                                                  |
| 35                                                      | Uttarakhand                                             | 23,895                                                  | 3,410                                                   |
| 36                                                      | West Bengal                                             | 1,35,778                                                | 20,289                                                  |
|                                                         | Total                                                   | 21,49,495                                               | 3,39,321                                                |

- (ii) Prime  Minister's  Employment  Generation  Programme  (PMEGP) assists  General  Category beneficiaries with Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas.  For  beneficiaries  belonging  to  Special  Categories  such  as  Scheduled  Castes,  Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen, Physically Handicapped, Transgenders, beneficiaries belonging to Northeastern Region, Hill and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas.

State-wise detail of number of micro enterprises assisted, margin money subsidy released and estimated employment generated under PMEGP in the current financial year i.e., 2025-26 (as on 10.02.2026), is given below:

|   S. No. | State                  | Micro Enterprises Assisted   |   MMSubsidy released (in crore) | Estimated employment generation   |
|----------|------------------------|------------------------------|---------------------------------|-----------------------------------|
|        1 | Andaman Nicobar Island | 33                           |                            0.53 | 264                               |
|        2 | Andhra Pradesh         | 5,825                        |                          193.77 | 46,600                            |
|        3 | Arunachal Pradesh      | 70                           |                            4.59 | 560                               |
|        4 | Assam                  | 1,510                        |                           45.09 | 12,080                            |
|        5 | Bihar                  | 4,285                        |                          127.52 | 34,280                            |
|        6 | Chandigarh             | 2                            |                            0.06 | 16                                |
|        7 | Chattishgarh           | 888                          |                           36.18 | 7,104                             |
|        8 | Delhi                  | 14                           |                            0.6  | 112                               |
|        9 | Goa                    | 23                           |                            1.05 | 184                               |
|       10 | Gujarat*               | 1,722                        |                          192.35 | 13,776                            |
|       11 | Haryana                | 932                          |                           56.96 | 7,456                             |
|       12 | Himachal Pradesh       | 608                          |                           22.9  | 4,864                             |
|       13 | Jammu &Kashmir         | 6,175                        |                          128.78 | 49,400                            |
|       14 | Jharkhand              | 729                          |                           21.85 | 5,832                             |
|       15 | Karnataka              | 3,108                        |                          122.88 | 24,864                            |
|       16 | Kerala                 | 1,958                        |                           50.95 | 15,664                            |
|       17 | Ladakh                 | 138                          |                            6.18 | 1,104                             |
|       18 | Lakshadweep            | -                            |                            0    | -                                 |
|       19 | Madhya Pradesh         | 1,658                        |                           80    | 13,264                            |
|       20 | Maharashtra**          | 2,299                        |                          121.48 | 18,392                            |
|       21 | Manipur                | 298                          |                            7.32 | 2,384                             |
|       22 | Meghalaya              | 386                          |                           12.36 | 3,088                             |
|       23 | Mizoram                | 191                          |                            7.19 | 1,528                             |
|       24 | Nagaland               | 455                          |                            8.69 | 3,640                             |
|       25 | Odisha                 | 2,654                        |                           85.48 | 21,232                            |
|       26 | Puducherry             | 16                           |                            0.47 | 128                               |

| 27    | Punjab        | 1,124   |   74.11 | 8,992   |
|-------|---------------|---------|---------|---------|
| 28    | Rajasthan     | 1,517   |  115.88 | 12,136  |
| 29    | Sikkim        | 202     |    6.89 | 1,616   |
| 30    | Tamil Nadu    | 5,575   |  172.81 | 44,600  |
| 31    | Telangana     | 2,148   |   94.14 | 17,184  |
| 32    | Tripura       | 382     |    9.83 | 3,056   |
| 33    | Uttar Pradesh | 6,802   |  289.17 | 54,416  |
| 34    | Uttarakhand   | 509     |   20.21 | 4,072   |
| 35    | West Bengal   | 759     |   31.77 | 6,072   |
| Total | Total         | 54,995  | 2150.02 | 439,960 |

Initiatives undertaken by the Ministry of MSME under PMEGP to promote the entrepreneurship across the country including Tamil Nadu, are as follows:

- i. 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.
- ii. Inclusion  of  applicants  from  Aspirational  districts  and  Transgenders  under  special  category eligible for higher subsidy.
- iii.    Acceptance  of  PMEGP  applications  from  beneficiaries  in  physical  form  in  19  regional languages since June 2025 excluding Hindi and English.
- iv.    Enhancing  the  scope  of  activities  by  modifying  Negative  list  to  allow  more  activities  under Animal Husbandry like dairy, poultry, aquaculture and sericulture.
- v.    A  wide  range  of  more  than  1,000  Model  of  Detailed  Project  Reports  have  been  prepared  on various  industries  and  made  available  on  the  PMEGP  online  portal  enabling  applicants  to submit quality DPRs.
- vi. Entrepreneurship Development Programme (EDP) training is provided to prospective entrepreneurs  and  beneficiaries  to  provide  orientation  and  awareness  pertaining  to  various managerial and operational functions like finance, production, marketing, enterprise management etc.
- vii.    Awareness programmes in all the States/UTs including backward and under-performing areas, Aspirational districts, North Eastern Region etc..
8. (c): NIL, There is no such scheme in Government of India

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