Lok Sabha Question No. 1997 (UNSTARRED), answered on 2025-12-11
Subject: Revival of MSME Sector
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Raja A

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

## LOK SABHA UNSTARRED QUESTION NO. 1997 TO BE ANSWERED ON: 11.12.2025

## REVIVAL OF MSME SECTOR

## 1997. SHRI RAJA A:

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

- (a) the details of existing schemes to help revive Micro, Small and Medium Enterprises sector which is facing a crisis during the last five years;
- (b) whether the Government intends to provide collateral-free term loan to MSME sector for their working capital, if so, the details thereof;
- (c) whether  any  package  covering  financing,  regulatory  changes  and  technology  support  for MSMEs to help them grow and also compete globally, formulated, if so, the details thereof;
- (d) the number of MSME units benefited in the country, especially in Tamil Nadu, with number of employment generation; and
- (e) the details of measures taken to facilitate marketing their products, in domestic market and globally, including giving preference by various Departments, in procurement?

## ANSWER

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

(a) and (b): To  strengthen  and  support  the  MSME  sector,  the  Government  of  India  has  taken various steps which, inter-alia, include the following: -

- i. Gazette  Notification  dated  May  29,  2015  provides  a  'Framework  for  Revival  and Rehabilitation of Micro, Small and Medium Enterprises' (FRR for MSMEs). Subsequently, RBI issued instructions vide its circular no. RBI/2015-16/338 FIDD.MSME & NFS.BC.No.21/06.02.31/2015-16 dated 17.03.2016 for implementation of the same.
- ii. Emergency  Credit  Line  Guarantee  Scheme  launched  for  businesses,  including  MSMEs with a provision to provide a cover for Credit Guarantee to the tune of Rs 5 lakh crore. The scheme was operational till 31.03.2023. As per a research report dated 23.01.2023 of the  State  Bank  of  India  on  Emergency  Credit  Line  Guarantee  Scheme,  about  14.6  lakh MSME accounts of which about 98.3% were in the MSE category were saved from being NPAs.
- iii.   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 upto Rs. 10 crore (w.e.f 01.04.2025) extended by Member Lending Institutions to MSEs.
- iv.   Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- v. New revised criteria for classification of MSMEs.
- vi.   No global tenders for procurement up to Rs. 200 crores.

vii. 'Udyam Registration' for MSMEs, for Ease of Doing Business

- viii.  Launching  of  an  online  Portal  'Champions'  in  June,  2020  to cover many  aspects  of  egovernance including redressing grievances and handholding of MSMEs.
- ix.   Inclusion of Retail and Wholesale traders as MSMEs as well as street vendors for availing the Priority Sector Lending.
- x. non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- xi.   Launch  of  Udyam  Assist  Platform  (UAP)  on  11.01.2023  to  bring  Informal  Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
5. (c): Ministry  of  MSME  implements  MSME  Champions  scheme  with  a  holistic  approach  to unify, synergize, and converge various schemes with common purpose. The end objective is to pick up enterprises and modernize their processes, reduce wastages, sharpen business competitiveness, and facilitate  their  national  and  global  reach and excellence.   There are  3  components under  the MSME  Champions  scheme  which  include  MSME-Sustainable  (ZED)  Certification  Scheme, MSME-Competitive (Lean) Scheme and MSME-Innovative (Incubation, Design & IPR) Scheme.
6. (d): The details of MSMEs benefitted under major schemes of Ministry of MSME are as under:
- i. The details of the number of MSMEs registered on Udyam and UAP along with estimated employment generated are as under:
- ii. The details of the credit guarantees approved and estimated employment generated under the CGS for MSEs are as under:
- iii. The  details  of  the  no.  of  units  benefitted  under  Prime  Minister  Employment  Generation Programme (PMEGP) are as under:

| MSMEs registered on Udyam and UAP since 01.07.2020 to 30.11.2025   | MSMEs registered on Udyam and UAP since 01.07.2020 to 30.11.2025   | MSMEs registered on Udyam and UAP since 01.07.2020 to 30.11.2025   |
|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
|                                                                    | No of MSMEs registered                                             | Estimated Employment Generated                                     |
| All India                                                          | 7,23,32,260                                                        | 31,66,13,901                                                       |
| Tamil Nadu                                                         | 57,86,295                                                          | 2,99,45,213                                                        |

| CGS- Guarantees Approved Cumulative since inception in 2000 till 30.11.2025   | CGS- Guarantees Approved Cumulative since inception in 2000 till 30.11.2025   | CGS- Guarantees Approved Cumulative since inception in 2000 till 30.11.2025   | CGS- Guarantees Approved Cumulative since inception in 2000 till 30.11.2025   |
|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                               | No. of Guarantees Approved                                                    | Amount Approved (in Rs. Crore)                                                | Estimated Employment Generated (in lakh)                                      |
| All India                                                                     | 1,30,63,982                                                                   | 11,84,872                                                                     | 361                                                                           |
| Tamil Nadu                                                                    | 9,87,608                                                                      | 88,744                                                                        | 64                                                                            |

| PMEGP Cumulative since inception till FY 2024-25   | PMEGP Cumulative since inception till FY 2024-25   | PMEGP Cumulative since inception till FY 2024-25   | PMEGP Cumulative since inception till FY 2024-25   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
|                                                    | No. of units assisted                              | Margin Money Subsidy (in Rs. Crore)                | Estimated Employment Generated                     |
| All India                                          | 10,71,014                                          | 29,249                                             | 87,25,194                                          |
| Tamil Nadu                                         | 70,520                                             | 1,828                                              | 6,55,203                                           |

(e): The Ministry of MSME vide Gazette Notification No. S.O. 581(E), dated 23rd March, 2012 notified  the  Public  Procurement  Policy  for  MSEs,  Order,  2012.  The  Policy  (amended  in  2018) mandates 25% annual procurement from MSEs by Central Ministries/Departments/Central Public Sector Enterprises (CPSEs), including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs.

Ministry  of  MSME  implements  Procurement  &  Marketing  Support  (PMS)  Scheme  to enhance marketability and market access of products and services of MSEs. The Scheme supports market  access  initiatives  such  as  organising/participation  in  national  &  international  trade  fairs/ exhibitions, vendor development programmes (VDPs), adoption of e-commerce platform (MSME Global Mart), adoption of bar-code, national workshops/ seminars.

Further, International  Cooperation Scheme  provides  financial assistance to facilitate visits/participation of MSMEs  in  international exhibitions/fairs/buyer-seller meets and for organizing  international  conferences/seminar/workshops  in  India.  Under  this  scheme,  financial support is also provided  to the  first-time  Micro  &  Small  exporters  on  Registration-cumMembership  Certification  (RCMC)  with  Export  Promotion  Councils  (EPCs),  Export  Insurance Premium and Testing & Quality Certification for exports.

Ministry  of  MSME  has  developed  a  dedicated  support  system  for  export  promotion  in MSME Sector  in  the  country  by  establishing  65  Export  Facilitation  Centres  (EFCs)  in  its  field organizations  namely  MSME-Development  and Facilitation Offices,  MSME  Technology  Centres and MSME Testing Centres.

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