Lok Sabha Question No. 4405 (UNSTARRED), answered on 2026-03-19
Subject: Performance of MSMEs in West Bengal
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Azad Kirti Jha

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4405 TO BE ANSWERED ON: 19.03.2026

## PERFORMANCE OF MSMEs IN WEST BENGAL

## 4405. SHRI AZAD KIRTI JHA:

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

- (a) whether the Government is aware that West Bengal records the highest employment intensity of  Micro, Small and Medium Enterprises (MSMEs) credit in the country, with approximately 162 jobs  generated  per Rupees one crore of MSMEs lending against the national average of about 44 jobs, as per data from the Ministry and Small Industries Development Bank of India (SIDBI) and if so, the details thereof;
- (b) the steps taken to increase credit flow and ease of access for MSMEs, particularly in districts with low formal credit penetration;
- (c) the  initiatives  taken/proposed  to  be  taken  to  strengthen  cluster  development,  digitalisation and common infrastructure for MSMEs in the State;
- (d) the details of credit guarantee, interest subvention and refinance schemes  currently operational in West Bengal under programmes such as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Prime Minister's Employment Generation Programme (PMEGP) and Raising and Accelerating MSME Performance (RAMP); and
- (e) the measures being implemented to promote women entrepreneurship, financial literacy and credit awareness among MSMEs

## ANSWER

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

- (a): As per Udyam Portal, 53.65 lakhs MSMEs have been registered in the state of West Bengal till 16.03.2025. The MSMEs in the state of West Bengal has employed 2.23 crore people of the state.
- (b) to (e): The Government has taken various measures to improve credit penetration, increase ease of access, strengthen cluster development for Micro, Small and Medium Enterprises (MSMEs), including women led MSMEs, across the country, which inter-alia includes:
- i. Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small  Enterprises  (MSEs)  implemented through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit  guarantee  for  loans  extended  to  MSEs  without  collateral  security  and  third-party guarantee. The ceiling for guarantee coverage is Rs. 10 crore under the scheme. The scheme also  provides  credit  guarantee  coverage  of  90%  for  loans  extended  to  women-led  MSEs,  as against 75% in general, along with a 10% relaxation in the guarantee fee. Since inception till 28.02.2026,  a  total  of  8,03,720  credit  guarantees  amounting  to  Rs.76,887  Crore  have  been extended to MSEs in West Bengal.
- ii. Self-Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in MSMEs with a provision of Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital Funds. The Budget 2026-27 has also announced a support of Rs 2,000 crore to top up the SRI Fund set up in 2021 to continue support to micro enterprises.

- iii. Prime  Minister's  Employment  Generation  Programme  (PMEGP)  provides  margin  money subsidy for setting up of new micro enterprises, in the non-farm sector with project cost of Rs. 50 lakh for Manufacturing and Rs. 20 lakh for Services enterprises. For beneficiaries belonging to Special categories such as Women, the margin money subsidy is 35% in rural areas and 25% in urban areas.Under PMEGP, during the last three years, 5,404 Micro Enterprises have been assisted by a way of margin money subsidy of Rs.201.53 crore generating 43,232 employment in the state of West Bengal.
- iv. Ministry of MSME implements Micro and Small Enterprises Cluster Development Programme (MSE-CDP)  across the country, with an objective to enhance the productivity and competitiveness  of  MSEs  for  their  holistic  development  adopting  cluster  approach  through financial assistance as Government of India (GoI) grant for establishment of Common Facility Centres (CFCs) in the existing clusters and for establishment of new / up-gradation of existing Industrial Areas / Estates / Flatted Factory Complex.
- v. Procurement  and  Marketing  Support  (PMS)  scheme  run  by  Ministry  of  MSME  extends benefits for creating market access initiatives to MSEs. Under the scheme women beneficiaries are provided 100% Budgetary support upto Rs.1.5 Lakhs for Metro and A class cities and Rs. 0.80 lakhs for other cities for participation in approved domestic trade fairs and exhibitions
- vi. Ministry  of  MSME  implements  Raising  and  Accelerating  MSME  Performance  (RAMP) programwhich  aims  at  enhancing  the  impact  of  the  existing  schemes  like  the  MSME Champions scheme, Credit Guarantee Scheme etc, and increasing Centre-State collaboration by  providing  grants  to  States/UTs  for  funding  selected  projects  proposed  in  the  Strategic Investment Plans proposed by the States and UTs. Under MSE Green Investment Financing for Transformation (GIFT) Scheme and MSE Scheme for Promotion and Investment in Circular Economy (MSE - SPICE) scheme of RAMP Programme, 6,029 MSEs have been assisted with sanctioned amount of Rs.4345.25 Crore in the state of West Bengal.
- vii. In order to address the constraints faced by MSMEs in obtaining finance, particularly in terms of  their  ability  to  convert  trade  receivables  into  liquid  funds,  RBI  had  issued  guidelines  in December  2014  (updated  on  July  02,  2018)  for  the  Trade  Receivables  Discounting  System (TReDS)'  permitting  the  non-bank  entities  to  set  up  and  operate  an  electronic  platform  for facilitating the financing of MSMEs' trade receivables through multiple financiers.
- viii. As informed by RBI, in terms of para 4.1 (a)  of  RBI  Master  Direction - Lending  to Micro, Small & Medium Enterprises (MSME) Sector dated July 24, 2017, all Scheduled Commercial Banks are mandated  not  to  accept  collateral  security  in  the  case  of  loans  up  to  Rs.  10  lakh extended to units in the MSE sector. As per RBI circular dated 9th February 2026, this limit stands increased to Rs. 20 lakh from 1st April, 2026.
- ix. Ministry  of  MSME,  through  its  field  offices,  regularly  organizes  outreach  programmes  in coordination with MSME/  Industry Departments of States/UTs concerned and other stakeholders  like  CGTMSE,  SIDBI,  Banks,  MSME  Associations  etc.,  to  enhance  credit availability among MSMEs.

*****