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Government Boosts MSME Sector with New Credit Schemes and Export Initiatives

Organising international conference, seminar and workshops in India are also included in the scheme.

KJ Staff
Government Boosts MSME Sector with New Credit Schemes and Export Initiatives (Photo Source: Pixabay)
Government Boosts MSME Sector with New Credit Schemes and Export Initiatives (Photo Source: Pixabay)

The Government has taken a number of steps to facilitate easy access to credit for the MSME sector in the country, through various schemes, programmes and policy initiatives. The schemes aim to facilitate the flow of credit to the Micro and Small Enterprises without the hassles of collateral and third party guarantee up to a maximum of Rs. 5 crore. Credit Guarantee Scheme for Micro and Small Enterprises too has been implemented.

Prime Minister Employment Generation Programme (PMEGP) is a major credit-linked subsidy program, aimed at generating self-employment for Micro Enterprises, while Pradhan Mantri Mudra Yojana (PMMY) extends collateral free credit up to Rs.10 lakh.

An official release said that Stand-Up India (SUI) Scheme facilitates loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs. 1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one women borrower per bank branch.

Likewise, PM Vishwakarma Scheme envisages to provide end-to-end holistic support, including credit support to artisans and craftspeople in the 18 trades covered, the release said, quoting Minister of State for Micro, Small and Medium Enterprises Shobha Karandlaje.

Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit of MSME and inclusion of Retail and Wholesale traders as MSMEs for the purpose of availing Priority Sector Lending benefits are among the other key initiatives.

The Ministry of MSME implements the International Cooperation (IC) Scheme, under which financial assistance is provided on reimbursement basis to the eligible Central/State Government organisations and industry associations to facilitate participation of MSMEs in international exhibitions, fairs and buyer-seller meets held abroad. Organising international conference, seminar and workshops in India are also included in the scheme.

Additionally, under the new component of IC Scheme, namely Capacity Building of First Time Exporters (CBFTE) launched in June 2022, reimbursement is provided to new Micro & Small Enterprises (MSEs) Exporters for costs incurred on Registration-cum-Membership Certification (RCMC), Export Insurance Premium and Testing & Quality certification for exports.

These interventions under IC Scheme assist the exporters in the MSME sector to increase their access to international markets. The Ministry of MSME has established 60 Export Facilitation Centers (EFCs) across the country with an aim to provide requisite mentoring and handholding to MSEs.

The Government has taken measures to promote exports from the districts under the District as Export Hub Initiative. Products/Services with export potential have been identified in the districts. An institutional mechanism has been set up in all States/UTs by forming the State Export Promotion Committee (SEPC) and District Export Promotion Committee (DEPC) at the District level.

Under the initiative, District Export Action Plans detailing the existing bottlenecks in the supply chain and identifying possible interventions to mitigate the existing gaps are being prepared for all the districts.

To encourage exports from the districts under "Districts as Export Hubs", DGFT through Regional Authorities has been engaging with States and Districts to conduct export promotion outreach events. This includes handholding sessions with exporters and export related awareness sessions.

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