Govt Aims to Extend Additional ₹5 Trillion in Credit Guarantees Over the Next Two Years

The government plans to expand the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme by offering an additional ₹5 lakh crore in credit guarantees to micro and small enterprises over the next two years, according to Rajneesh, Additional Secretary and Development Commissioner (MSME). Speaking at a FICCI event, Rajneesh noted that ₹4 lakh crore in credit guarantees have been provided in the past two years under the CGTMSE scheme.

He highlighted that, prior to the last two years, CGTMSE had cumulatively extended ₹2.6 lakh crore in credit guarantees over a span of 22 years. The recent acceleration in guarantees aims to support MSMEs in accessing credit without the need for collateral, and the government is set to increase this by another ₹5 lakh crore in the coming two years.

Rajneesh also addressed the formalization of MSMEs, noting a significant rise in Udyam-registered MSMEs from 1.65 crore to 5 crore over the past year. This increase was achieved through joint efforts between the central government, state governments, and industry associations, significantly reducing the formalization gap for MSMEs in India.

At the same event, Chakravarthy T Kannan, Secretary General of the Quality Council of India (QCI), emphasized the need for a Universal Quality Interface—similar to UPI—to assist Original Equipment Manufacturers (OEMs) in making informed decisions based on ZED progression (Zero Defect, Zero Effect). He also mentioned ongoing collaboration with the Open Network for Digital Commerce (ONDC) to create a platform that guarantees quality for MSMEs.

Kannan added, “Indian MSMEs are poised for significant growth, and QCI is eager to support the industry in its journey towards Viksit Bharat.”

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