Lok Sabha Question No. 864 (UNSTARRED), answered on 2025-12-04
Subject: Issues concerning MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri S Venkatesan

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

## LOK SABHA UNSTARRED QUESTION NO. 864 TO BE ANSWERED ON: 04.12.2025

## ISSUES CONCERNING MSMEs

## 864. SHRI  S VENKATESAN:

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

- (a) whether  the  Government  has  taken  note  of  the  issues  raised  by  various  MSME  associations regarding subsidy support, special packages, long-term loans at lower interest rates, relaxation of credit norms for NPAs and other related demands, if so, the details thereof;
- (b) the measures taken by the Government to address these issues and concerns of the MSME sector; and
- (c) whether  this  Ministry  has  sent  any  recommendations  received  along  with  the  response  to  the Ministry of Finance in this regard and, if so, the details received there from?

## ANSWER

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

(a) to (c): Stakeholders'  consultation  is  a  continuous  process  in  policy  making  including  in  the MSME sector. The Government  of  India  has  taken  a  number  of  initiatives  and  measures  to  provide support to Micro, Small and Medium Enterprises (MSMEs) for improving access to finance. Some of them are:

- i. The  Ministry  of  Micro,  Small  and  Medium  Enterprises  and  Small  Industries  Development Bank  of  India  (SIDBI)  jointly  set  up  Credit  Guarantee  Trust  Fund  for  Micro  and  Small Enterprises (CGTMSE) in the year 2000, to provide credit guarantees for the loans extended by  Member  Lending  Institutions  (MLIs)  to  Micro  and  Small  Enterprises  (MSEs),  without requiring collateral security or third-party guarantee under Credit Guarantee Scheme (CGS). Recently the Guarantee ceiling has been increased from Rs. 5 crore to Rs. 10 crore.
- ii. Prime Minister's Employment Generation Programme provides Margin Money subsidy upto 35%, for setting up of new micro enterprises, in the non-farm sector with project cost of Rs. 50 lakh and Rs. 20 lakh, for Manufacturing and Services enterprises, respectively.
- iii.  PM  Vishwakarma  was  launched  on  17.09.2023  to  provide  end-to-end  holistic  support  to artisans and craftspeople of 18 traditional trades who work with their hands and tools. The Scheme includes provision of loans upto Rs. 3 lakh with interest subvention of max upto 8%.
- iv.   Self Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crores as equity funding in MSMEs, with Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital Funds.

In addition, the Government has also taken various other measures to enhance access to credit for MSMEs  including  collateral  free  credit  to  MSEs,  implementation  of  Trade  Receivables  Discounting System  (TReDS),  MutualCreditGuaranteeScheme  for  projects  requiring  loans  upto  Rs  100  crore  to procure machinery and equipment, reduction in timelines for credit decisions by banks etc.

*****