The Ministry of Micro, Small and Medium Enterprises (MSME) has rolled out a comprehensive range of initiatives aimed at strengthening India’s MSME sector by improving formalisation, financial access, market connectivity and ease of doing business. These measures reflect the government’s commitment to creating a robust and self-reliant industrial base at the grassroots level.

Key Initiatives for Formalisation

To bring more enterprises under the structured MSME framework:

• The Udyam Registration Portal was launched on July 1, 2020, enabling MSMEs to register online using a fully paperless, Aadhaar-based system.

• The Udyam Assist Platform (UAP) followed, helping Informal Micro Enterprises transition into the formal sector and become eligible for priority sector lending.

• Retail and wholesale traders were included in the MSME definition (effective July 2, 2021), significantly broadening the sector’s reach and benefits.

As a result of these initiatives, 6.63 crore MSMEs have registered on Udyam and UAP between July 2020 and July 2025.

Expansion of Credit and Financial Access

To support MSMEs with seamless access to finance:

• The Credit Guarantee Scheme has been revamped with a ₹9,000 crore (US$ 1.03 billion) infusion, aimed at enabling ₹2,00,000 crore (US$ 22.89 billion) in additional credit.

• A new provision of collateral-free loans up to ₹10 crore (US$ 1.1 million) with 90% guarantee coverage became effective from April 1, 2025.

• The Self-Reliant India Fund with a corpus of ₹50,000 crore (US$ 5.72 billion) has been set up to provide equity support to MSMEs with high growth potential.

• TReDS (Trade Receivables Discounting System) is being promoted to facilitate the electronic financing of MSME receivables, helping reduce payment delays from corporates and government departments.

Skill and Employment-Oriented Schemes

• The PM Vishwakarma Scheme, launched on September 17, 2023, provides holistic support—including skill training, credit, tools and marketing—to traditional artisans and craftspeople working in 18 trades.

• The Prime Minister’s Employment Generation Programme (PMEGP) has been expanded, with project cost limits enhanced to ₹50 lakh (US$ 57,228) for manufacturing and ₹20 lakh (US$ 22,891) for service enterprises—allowing more beneficiaries to access the scheme.

Outlook

Together, these initiatives form a multi-layered support framework to boost the competitiveness and sustainability of micro, small and medium businesses across the country.
By addressing the sector’s long-standing challenges—such as formalisation, delayed payments, lack of equity capital and absence of collateral—these measures position the MSME ecosystem as a critical pillar in India’s economic growth and self-reliance strategy.

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