Lok Sabha Question No. 6341 (UNSTARRED), answered on 2026-04-02
Subject: Modernisation of MSME in Uttar Pradesh
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Zia Ur Rehman

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

## LOK SABHA UNSTARRED QUESTION NO. 6341 TO BE ANSWERED ON 02.04.2026

## MODERNISATION OF MSME IN UTTAR PRADESH

## 6341. SHRI ZIA UR REHMAN:

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

- (a) whether the Government has conducted any assessment of the financial stress, technology  gaps  and  export  challenges  faced  by  Micro,  Small  and  Medium  Enterprises  (MSMEs)  in industrial clusters of Western Uttar Pradesh;
- (b) if so, the details of credit support, technology upgradation schemes and cluster development programmes implemented in the region;
- (c) whether similar MSME-related challenges exist in other parts of the country; and
- (d) if so, the details of nationwide initiatives undertaken to strengthen and modernize  the MSME sector across India?

## ANSWER

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

(a) to (d): The Government regularly undertakes assessments of issues faced by Micro, Small and Medium  Enterprises  (MSMEs)  through  stakeholder  consultations,  inputs  from  State  Governments, industry associations, and periodic studies conducted by various institutions. These assessments indicate that  MSMEs,  including  those  in  industrial  clusters  of  Western  Uttar  Pradesh,  face  challenges  such  as access to timely and affordable credit, technology obsolescence, infrastructure gaps, and constraints in accessing markets, etc.

Government has  taken  various  measures  to  improve  credit  penetration  and  reduce  financial  stress  for MSMEs across the country, which inter-alia includes:

- (i) Ministry of MSME implements Credit Guarantee Scheme (CGS) for Micro Small Enterprises (MSEs) through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide  credit  guarantee  for  loans  extended  to  new  as  well  as  existing  MSEs  by  Member Lending Institutions without collateral security and third-party guarantee.
- (ii) Prime Minister's Employment Generation Programme provides Margin Money subsidy up to 35%, 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.
- (iii) PM Vishwakarma Scheme 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 up to Rs. 3 lakh with interest subvention up to 8%.

- (iv) 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.
- (v) 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.
- (vi) 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.
- (vii) 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.
- (viii)   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.

Some of the major interventions in the State of Uttar Pradesh are at Annexure-I

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## Annexure referred to in reply of part (a) & (b) of Lok Sabha Unstarred Question No. 6341 for answer on 02.04.2026 under MSE-CDP Scheme.

- (i)  The  details  of  approved  projects  of  Common  Facility  Centre  (CFCs)  implemented  in  the  Western Uttar Pradesh under MSE-CDP Scheme:
- (ii) Details of the credit guarantees extended to MSEs in Uttar Pradesh under CGS, including Western region of Uttar Pradesh are as under:
- (iii) Under PMEGP micro enterprises assisted, Margin Money Subsidy disbursed since its inception:
- (iv)  Self-Reliant  India  (SRI)  Fund  has  assisted  731  MSMEs  by  way  of  total  fund  investment  of  Rs. 17,438 crore.  Out  of  which,  23  MSMEs  have  been  assisted  by  a  way  of  total  fund  investment  of  Rs. 653.40 crore in Uttar Pradesh.

|   S. No. | Name of the Cluster                  | District    | Present Status   |
|----------|--------------------------------------|-------------|------------------|
|        1 | Readymade Garments Cluster, Bareilly | Bareilly    | Completed        |
|        2 | Scissors Cluster, Meerut             | Meerut      | Completed        |
|        3 | Pottery Cluster, Khurja              | Bulandshahr | Completed        |

| CGS - Guarantees approved- Inception in 2000 till 28.02.2026   | CGS - Guarantees approved- Inception in 2000 till 28.02.2026   | CGS - Guarantees approved- Inception in 2000 till 28.02.2026   | CGS - Guarantees approved- Inception in 2000 till 28.02.2026   |
|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
| Sr. No.                                                        |                                                                | No. of guarantees approved                                     | Amount approved (in Rs. crore)                                 |
| 1                                                              | All India                                                      | 1,39,39,040                                                    | 13,16,741                                                      |
| 2                                                              | Uttar Pradesh                                                  | 19,26,677                                                      | 1,37,574                                                       |

| Sr. No.   | State         | No. of Units Assisted   | Margin Money Subsidy (Rs. Cr)   |
|-----------|---------------|-------------------------|---------------------------------|
|           | All India     | 10,78,509               | 29,491.25                       |
| 1         | Uttar Pradesh | 114,312                 | 3,914.09                        |