Lok Sabha Question No. 289 (STARRED), answered on 2026-03-12
Subject: MoU between India and Brazil
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Adv. Chandra Shekhar

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

## LOK SABHA STARRED QUESTION NO. *289 TO BE ANSWERED ON: 12.03.2026

## MoU BETWEEN INDIA AND BRAZIL

## *289.        ADV. CHANDRA SHEKHAR:

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

- (a) whether,  pursuant  to  the  India-Brazil  MoU  signed  on  21  February  2026,  any  specific  and  timebound targets have been set for outcomes such as the number of MSMEs accessing green finance, joint projects to be undertaken, export gains, emission reductions and competitiveness improvements;
- (b) if  so,  the  details  thereof  and  the  concrete  steps  including  creation  of  dedicated  funds,  incentives, capacity-building  measures  or  bilateral  mechanisms,  proposed  to  be  taken  to  translate  the  MoU's  green transition objectives into actionable green lending;
- (c) the manner in which these initiatives align with (i) RBI data indicating 17 per cent  year-on-year MSME credit  growth  to  65.2  lakh  crore  as  of  September  2025,  (ii)  NITI  Aayog's  Roadmap  for  Green Transition of MSMEs (January 2026) and (iii) the World Bank's March 2025 MSME Finance Gap Report estimating a USD 5.7 trillion global finance gap;
- (d) whether  the  MoU  envisages  measures  to  enhance  uptake  of  the  MSME  Sustainable  (ZED) Certification Scheme, particularly for low-carbon and Zero Defect Zero Effect practices and to link ZED certification with improved access to green finance, additional incentives and training; and
- (e) the  steps  being  taken  to  prioritise  underserved  segments,  including  women-led  and  microenterprises to ensure equitable distribution of benefits in view of the estimated USD 1.9 trillion finance shortfall faced by women-owned MSMEs globally?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

(a) to (e): A statement is laid on the Table of the House.

## STATEMENT REFERRED IN REPLY TO THE PARTS (a) to (e) of LOK SABHA STARRED QUESTION NO. *289 FOR ANSWER ON 12.03.2026 ASKED BY ADV. CHANDRA SHEKHAR REGARDING  MoU BETWEEN INDIA-BRAZIL.

(a) to (e): The MoU between India and Brazil was signed with the objective of strengthening bilateral cooperation  for  the  development  and  promotion  of  MSMEs  in  both  countries.The  MoU  envisages cooperation  in  identified  sectors  and  projects.  Under  the  ambit  of  MoU,  both  countries  have  agreed  to cooperate on mutually agreed terms with the objective of enhancing joint collaboration for the development and promotion of MSMEs.

The MoU aims to create enabling conditions to support MSMEs in areas including but not limited to  advancing  the  green  transition,  integration  into  global  value  chains  by  improving  productivity,  and strengthening their  capacity  for  sustainable  development.  These  areas  of  cooperation  are  expected  to  be progressively realised through subsequent joint collaborations.

Under  the  ambit  of  the  MoU,  a  Joint  Committee  is  intended  to  be  constituted  for  monitoring implementation of the MoU and overseeing basic areas of cooperation agreeable to both sides. The MoU shall remain in effect for a period of five (5) years which may be renewed for further period of five (5) years, as mutually agreed upon by both parties.

The Government of India is promoting sustainable and inclusive development. This include support for adoption of green technologies, circular economy practices, improved access to collateral-free credit, promotion  of  sustainable  manufacturing  practices,  and  facilitation  of  MSMEs'  participation  in  global markets and value chains. Some of the initiatives taken up by the Ministry of MSME are: (i) MSE-Green Investment and Financing for Transformation (MSE-GIFT) Scheme which  provides interest subvention and  risk-sharing  support  to  facilitate  adoption  of  green  technologies  by  MSEs;(ii)  Micro  and  Small Enterprises  -  Scheme  for  Promotion  and  Investment  in  Circular  Economy  (MSE-SPICE)  encourages adoption  of  circular  economy  practices  by  MSEs  through  credit-linked  capital  subsidy,  awareness generation and information dissemination. The scheme provides financial assistance for investment in plant and  machinery  to  promote  resource  efficiency  and  sustainable  production;  (iii)  the  Credit  Guarantee Scheme  for  Micro  and  Small  Enterprises  (CGS-MSE)  provides  access  to  collateral-free  loans  through credit  guarantee  support,  thereby  helping  bridge  the  financing  gap  faced  by  MSEs;  (iv)  to  promote sustainable manufacturing practices, the  Zero Defect  Zero Effect (ZED)  Scheme encourages MSMEs to improve competitiveness and environmental sustainability. MSMEs  are  incentivized to get  ZED Certification  including  free  certification  for  women  owned  MSMEs;  (v)  the  International  Cooperation scheme helps MSMEs to access global markets and integrate into the global value chains by facilitating participation in international exhibitions, trade fairs, and business delegations; and (vi) under the Capacity Building  of  First  Time  Exporters  (CBFTE)  component  of  IC  scheme,  MSEs  are  encouraged  to  become exporters by facilitating  them to  register  with  Export  Promotion  Councils,  reimbursing  export  insurance premium and testing and quality certification charges.

To  ensure  inclusive  growth  of  MSMEs  and  equitable  access  to  opportunities  for  underserved segments, including women-led and micro enterprises, Ministry has been promoting SC-ST and women entrepreneurs  through  various  schemes  and  initiatives  including  credit  guarantee  coverage,  employment generation, and market linkages. The Government has mandated 4% and 3% public procurement targets from SC-ST and Women owned Enterprises respectively. The National SC-ST Hub (NSSH) scheme aims to mainstream their economic activities through capacity building of SC-ST entrepreneurs to participate in the  public  procurement  process.  It  also  supports  up-gradation  of  technology  and  machinery  through  the Special Credit  Linked Capital Subsidy Scheme. To address the finance shortfall, the Government under CGT-MSE scheme has approved 1,39,39,040 guarantees amounting to Rs. 13,16,741 crores for the period from  financial  year  2000-01  to  financial  year  2025-26  (up  to  28.02.2026),  out  of  which  30,74,531 guarantees  amounting  to  Rs.  2,06,883  crores  have  been  provided  to  women  owned  MSEs.  This  is  in alignment with the Viksit Bharat vision for promoting women led development.