Government Bridges Credit Gap for MSMEs in Recent Years, Says MSME Development Commissioner

At the recently held FICCI CMSME National Conference 2024, Dr. Rajneesh, Additional Secretary and Development Commissioner for the Ministry of Micro, Small, and Medium Enterprises (MSME), announced that the government has made significant strides in formalizing MSME businesses across India. He emphasized that many MSMEs were yet to register with the government despite their crucial role in the Indian economy. Previously, out of an estimated 6.5 to 7 crore MSMEs, only 1.63 crore were registered until last year.

Through a collaborative effort with state governments and industry associations, the government launched a nationwide drive to close this gap. As a result, the number of registered MSMEs has surged from 1.65 crore to a staggering 5 crore, marking substantial progress in the formalization of the MSME sector.

Dr. Rajneesh also highlighted the government’s efforts to address the credit gap for MSMEs in recent years. He pointed out that it’s not just about increasing the availability of MSME credit but also reducing the cost of credit. The Ministry has been working on these two fronts to ensure easier access to funds for MSMEs.

A key initiative in this endeavor is the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE), which provides credit guarantees to MSME businesses, enabling them to secure collateral-free loans. This initiative has been instrumental in offering financial support to MSMEs, helping them overcome traditional barriers in accessing funds.

Disclaimer: The information provided in this article is based on news updates and reports gathered from various internet sources. While every effort has been made to ensure the accuracy and reliability of the information, we encourage readers to verify the details independently before making any decisions.