SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure
Institutions: Ministry of Micro, Small and Medium Enterprises (MSME) | Ministry of Finance
The Government has outlined a comprehensive array of initiatives specifically designed to support and strengthen the Micro, Small and Medium Enterprises (MSME) sector across India. Financial Support and Credit Access schemes are actively in place to ensure easier access to capital. This includes the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which provides guarantee cover for collateral-free credit extended by lending institutions, and the Prime Minister’s Employment Generation Programme (PMEGP), which offers credit-linked subsidies for setting up new micro-enterprises across both rural and urban areas. Further technological upgrading is supported through the Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).
Market Access and Institutional Pillars are enhanced through institutionalized mechanisms. The Public Procurement Policy mandates that Central Ministries and Public Sector Undertakings (PSUs) must procure at least 25% of their annual value of goods and services from MSMEs. Additionally, schemes like the Raising and Accelerating MSME Performance (RAMP) Programme, assisted by the World Bank, focus on improving firm capacity and state-level policy effectiveness. The sector’s operational efficiency is streamlined through the Udyam Registration Portal, monitored via the MSME Samadhan Portal for delayed payments, and supported by the CHAMPIONS Portal for grievance redressal and handholding, ensuring these schemes support the sector’s resilience and growth.
The CHAMPIONS Portal is a centralized technology-driven platform launched by the Ministry of MSME. Its name stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. The portal’s main function is to address MSME grievances, provide mentorship, assist with financial linkages, and offer technology and market access support, serving as a single-window solution for the sector.
Policy Relevance
The detailed portfolio of financial (CGTMSE, PMEGP) and market-support initiatives (Public Procurement Policy, RAMP) is crucial for formalizing the MSME sector, enhancing its resilience, and supporting the Atmanirbhar Bharat goal by ensuring inclusive growth and strengthening the domestic manufacturing base.
Relevant Question for Policy Stakeholders: How will the Ministry of MSME scale up utilization of the CGTMSE and RAMP schemes to ensure that credit and capacity improvements reach remote, newly registered micro-enterprises?
Follow the full news here: Government Details Comprehensive Initiatives to Boost MSME Growth and Resilience