Lok Sabha Question No. 4560 (UNSTARRED), answered on 2026-03-19
Subject: Financial Support  to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. D Ravi Kumar

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

## LOK SABHA UNSTARRED QUESTION NO. 4560 TO BE ANSWERED ON: 19.03.2026

## FINANCIAL SUPPORT TO MSME's

## 4560. DR. D RAVI KUMAR:

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

- (a) the details of financial support provided to Micro, Small and Medium Enterprises (MSMEs) during the year 2023-24;
- (b) the details of export credit assistance extended to MSMEs during the year 2023-24;
- (c) the details of liquidity issues arise due to delayed payments to MSMEs; and
- (d) the steps taken to improve access to affordable finance for MSMEs?

## ANSWER

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

- (a): As  informed  by  RBI,  credit  outstanding  to  Micro  Small  &  Medium  Enterprises  (MSMEs) during the Financial Year 2023-24 was Rs. 23.93 lakh Crore.
- (b): In order to enable the cost-effective credit insurance, particularly to MSME exporters, and to stimulate  export  credit,  the  Export  Credit  Guarantee  Corporation  of  India  Ltd.  (ECGC)  has undertaken several initiatives in the recent past which inter-alia includes: -
- i. Enhanced insurance cover for banks by ECGC under the Short Term Whole Turnover Export Credit Insurance for Banks (WT-ECIB) scheme up to 90% from the earlier average cover of 70% for small exporter accounts with aggregate export credit working capital limits up to ₹20 crore,  ₹50  crore  and  ₹80  crore.  This  enables  banks  to  extend  export  credit  at  lower  interest rates applicable to highly rated accounts, thereby facilitating availability of adequate and costeffective export credit to MSMEs.
- ii. ECGC has also  provided  90%  insurance  cover  under  WT-ECIB  for  collateral  free  working capital  export  credit  limits  up  to  ₹10  crore  for  Micro  and  Small  Enterprise  (MSE) exporters who are unable to offer collateral security or third-party guarantees. This facility is available across  all  sectors  and  commodities  without  any  additional  premium  and  enables  banks  to extend liberal export credit to MSEs.

(c) & (d): In the recent past the liquidity issues of MSME was dealt with MSME SAMADHAN portal  and  the cases  was decided by Micro and Small Enterprises Facilitation Councils (MSEFCs). Further, in order to expand the coverage of the liquidity issues Ministry of MSME, Government of India launched Online Dispute Resolution (ODR) Portal on 27.06.2025 as digital, technology-enabled mechanism to strengthen the existing SAMADHAN Portal, with the objective of ensuring speedy, cost-effective, and transparent resolution of delayed payment disputes.

Further  to  address  the  working  capital  issues,  Government  of  India  vide  notification  S.  O. 4845(E) dated 07.11.2024 directed CPSEs and all companies with the turnover of Rs.250 Crore or more  to  on-board  the  Trade  Receivables  Discounting  System  (TReDS),  an  electronic  platform  for facilitating  the  discounting  of  trade  receivables  of  MSMEs  through  multiple  financers.  In  this connection  to  unlock  the  potential  of  working  capital  of  MSMEs  through  TReDS,  platforms,  the following four key measures have been announced in Budget Announcements 2026-27:

- i. Mandate TReDS as the settlement platform for purchases from MSMEs by CPSEs, setting a benchmark for other Corporate.
- ii. Introduce  CGTMSE-backed  credit  guarantee  support  for  invoice  discounting  on  TReDS platform.
- iii. Integrate with GeM with TReDS to enable information-sharing with financers on Government MSME purchases, facilitating faster and cheaper credit.
- iv. Introduce  receivables  as  asset-backed  securities  to  deepen  the  secondary  market,  improve liquidity, and speed up settlements.

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