Skip to content

Government Policy for MSME Sector in India

The Government of India has implemented various policies and initiatives to support the Micro, Small, and Medium Enterprises (MSME) sector, recognizing its crucial role in the country's economic development. These policies aim to address challenges such as access to finance, technology, markets, and infrastructure.

MSME Schemes in India

1. Credit Support

  • Emergency Credit Line Guarantee Scheme (ECLGS): Provides collateral-free loans to MSMEs to help them overcome the financial impact of COVID-19.
  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Offers credit guarantees to financial institutions that provide loans to MSMEs.
  • MUDRA Loan Scheme: Under the Pradhan Mantri MUDRA Yojana (PMMY), offers loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises.

2. Technology Upgradation and Quality Improvement

  • Credit Linked Capital Subsidy Scheme (CLCSS): Provides a capital subsidy to MSMEs for upgrading their technology.
  • Technology Centre Systems Program (TCSP): Establishes technology centers for technical and business advisory support to MSMEs.

3. Market Access

  • Udyam Registration: Simplifies the registration process for MSMEs.
  • Government e-Marketplace (GeM): An online platform for government departments to procure goods and services from MSMEs.
  • MSME Samadhaan: A portal to address delayed payments to MSMEs by government and CPSEs.

4. Skill Development and Training

  • Tool Rooms and Technology Development Centres: Provide specialized training, design, and manufacturing support to MSMEs.
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Skill development programs for youth, including those involved in the MSME sector.

5. Infrastructure Development

  • MSME Cluster Development Program: Enhances the competitiveness of MSMEs by creating/upgrading infrastructure facilities in industrial clusters.

6. International Cooperation and Export Promotion

  • Market Access Initiative (MAI): Encourages MSMEs to tap overseas markets.
  • Export Promotion Councils: Support MSMEs in international market entry.

7. Regulatory Easing

  • Decriminalization of minor offences: Reduces the burden on MSMEs by decriminalizing minor legal and procedural lapses under various Acts.

8. COVID-19 Specific Measures

  • Atmanirbhar Bharat Abhiyan: Includes measures specifically designed to support MSMEs during COVID-19, such as equity infusion through Fund of Funds, revision in MSME definition, and financial support mechanisms.

These initiatives are aimed at bolstering the growth of the MSME sector, improving its competitiveness, and enabling its integration into the global economy.

Ask Hive Chat Chat Icon
Hive Chat
Hi, I'm Hive Chat, an AI assistant created by CollegeHive.
How can I help you today?
🎶
Hide