Lok Sabha Question No. 3402 (UNSTARRED), answered on 2026-03-12
Subject: Support to Rural and Semi-Urban MSMEs
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. 3402 TO BE ANSWERED ON: 12.03.2026

## SUPPORT TO RURAL AND SEMI-URBAN MSMEs

## 3402.      SHRI ZIA UR REHMAN:

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

- (a) whether the Government has taken note of the challenges faced by Micro, Small and Medium Enterprises (MSMEs) regarding credit access, high interest rates and delayed payments and if so, the details thereof;
- (b) the details of initiatives undertaken to increase formal credit availability and digital onboarding of small enterprises; and
- (c) whether any new interventions are proposed to support rural and semi-urban MSMEs, including artisans and micro-manufacturers and if so, the details thereof?

## ANSWER

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

(a) to (c): The Government has, inter-alia, undertaken the following measures at the policy level to enhance and strengthen the Micro, Small and Medium Enterprises ecosystem in the country, including Rural and Semi-Urban MSMEs:

- i. Ministry of MSME implements Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) through Credit Guarantee Fund Trust for Micro and Small Enterprises to provide credit guarantee for loans extended to MSEs. The ceiling for guarantee coverage under the scheme is Rs 10 crore.
- 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 2000 crore to top up the Self-Reliant India Fund set up in 2021 to continue support to micro enterprises and maintain their access to risk capital.
- iii. The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May, 2020 as part of Aatmanirbhar  Bharat  Package  to  support  eligible  MSMEs  and  business  enterprises  in  meeting their  operational liabilities due to disruption caused by COVID-19 pandemic. The Scheme was operational  till  31.03.2023.  As  reported  by  Department  of  Financial  Services,  under  ECLGS, since inception till 31.03.2023, total 1.13 crore guarantees covering a value of Rs.2.42 lakh crore have been extended to MSMEs.

- iv. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 under Section 15-23 of Chapter V mandates payment to the MSEs to be made within 45 days. Under the provisions of the MSMED Act, 2006, Micro & Small Enterprises Facilitation Councils (MSEFCs) have been set  up  in  the  States/UTs  to  deal  with  cases  of  delayed  payments  of  the  MSEs.  For  filing  and monitoring the pending  payment cases by MSEs against the buyers of  goods and services, the Government launched SAMADHAAN Portal on 30.10.2017. The cases filed on the portal are referred to the concerned MSEFC for resolution of dispute between the MSE seller and the buyer.
- v. Retail and wholesale traders have also been included under the MSME category for the purpose of  Priority  Sector  Lending  (PSL)  with  effect  from  02.07.2021.  To  bring  Informal  Micro Enterprises (IMEs) into the formal financial framework and enable them to avail PSL benefits, the Udyam Assist Platform was launched on 11.01.2023. The Government has further extended nontax benefits for a period of three years in cases of upward transition of MSME classification.
- vi. Under  the  Digital  India  programme,  the  Ministry  of  Electronics  and  Information  Technology (MeitY)  offers  services  on  Digital  Infrastructure  as  a  Utility,  Governance  and  Services  on Demand,  Digital  Empowerment  of  Citizens  and  MSMEs.  Digital  payments  are  also  done  by MSMEs through different platforms. In order to improve and increase the integration of above technologies  to  help  MSMEs  for  digitalisation  across  the  Country,  Ministry  of  MSME,  in collaboration with stakeholders runs many initiatives, which inter-alia include the Udyam Portal, MSME Champions Portal, Government e-Marketplace, Trade Receivables Discounting System (TReDS),  MSME  Trade  Enablement  and  Marketing  Scheme,  MSME  SAMBANDH,  Prime Minister's  Employment  Generation  Programme  (PMEGP)  Portal,  Khadi  and  Village  Industries Commission Online, PM Vishwakarma Portal and Online Dispute Resolution portal.
- vii. PMEGP 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 Service enterprises.
- viii. 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%.

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