Credit to Micro, Small and Medium Enterprises (MSMEs) has increased significantly over the past three years, according to Minister of State for MSMEs Shobha Karandlaje. The government has been strengthening financial support for the sector through credit expansion, subsidy schemes, and equity investment initiatives aimed at boosting entrepreneurship and employment generation.
Under the Prime Minister’s Employment Generation Programme (PMEGP), the government provides subsidies of up to 35% for establishing new micro-enterprises. The scheme supports projects up to ₹50 lakh in the manufacturing sector and ₹20 lakh in the services sector, encouraging individuals to start small businesses and generate local employment.
In addition, the government has introduced the Self-Reliant India Fund to strengthen equity financing for MSMEs. The fund aims to mobilize ₹50,000 crore in equity investments, with the government contributing ₹10,000 crore as seed capital to attract private sector participation and scale up MSME growth.
These initiatives highlight the government’s continued focus on strengthening the MSME ecosystem, improving access to finance, and supporting the expansion of small businesses that play a crucial role in the economic development of Bharat.
