The Indian government has announced a significant financial boost for Micro, Small, and Medium Enterprises (MSMEs) with the allocation of a Rs 2,250 crore budget under the newly established Export Promotion Mission. This initiative is aimed at enhancing the competitiveness of MSMEs, particularly in key sectors such as textiles, toys, leather, and marine, by addressing their needs for technology upgrades, marketing, brand building, and access to new markets. The mission is a collaborative effort between the Commerce, MSME, and Finance Ministries, which will jointly identify sectors requiring maximum capital support to drive export growth. The funding will also facilitate easier access to export credit, cross-border factoring support, and help MSMEs tackle non-tariff measures in international markets. This move is expected to strengthen domestic manufacturing and boost exports, with MSMEs currently contributing 45% of India's total exports and employing over 7.5 crore people across 5.7 crore enterprises. The initiative underscores the government's commitment to supporting MSMEs as a critical engine of economic growth and job creation.
Additionally, the budget includes measures to enhance financial access for MSMEs, such as the introduction of customized credit cards for micro-enterprises with a limit of Rs 5 lakh, aimed at businesses registered on the Udyam portal. In the first year, 10 lakh such cards will be issued. The government has also increased the credit guarantee cover for micro and small enterprises from Rs 5 crore to Rs 10 crore, which is expected to generate an additional Rs 1.5 lakh crore in credit over the next five years. Furthermore, well-performing exporter MSMEs will have access to term loans of up to Rs 20 crore, reinforcing India's position in global markets. These steps are part of a broader strategy to address the sector's financial challenges and promote innovation and entrepreneurship, with a new Fund of Funds announced to support startups
Recent discussions on platforms like X reflect positive sentiment around these announcements, with users highlighting the increased investment and turnover limits for MSMEs, the doubling of credit guarantee coverage, and targeted support for women and SC/ST entrepreneurs. These measures are seen as a major push for scaling up, fostering innovation, and creating jobs, with MSMEs being recognized as the "second engine of growth" for the Indian economy. However, as these are social media posts, they should be viewed as indicative of public sentiment rather than conclusive evidence
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