Government Plans to Boost MSME Credit Guarantees by Rs 5 Lakh Crore

The government aims to increase credit guarantees for micro and small enterprises under the CGTMSE scheme by an additional Rs 5 lakh crore over the next two years. The initiative, detailed by Rajneesh, Development Commissioner for MSMEs, seeks to bridge the formalization gap among MSMEs and support their growth.

The government has announced plans to increase credit guarantees for micro and small enterprises (MSMEs) through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) by Rs 5 lakh crore in the upcoming two years, according to Rajneesh, Additional Secretary and Development Commissioner for MSMEs.

In the last two years, the CGTMSE disbursed credit guarantees amounting to Rs 4 lakh crore, significantly higher than the cumulative Rs 2.6 lakh crore over the previous 22 years. Rajneesh emphasized the government's aim to further ramp up these guarantees to promote MSME growth.

The formalization of MSMEs has seen substantial progress, with registered entities rising to 5 crore from 1.65 crore in the past year. Chakravarthy T Kannan of the Quality Council of India highlighted efforts to integrate quality interfaces such as the 'Universal Quality Interface' to support MSMEs in achieving Zero Defect Zero Effect (ZED) certification and contribute to India's development.

(With inputs from agencies.)