In a significant move to boost the country’s small and medium enterprises (MSMEs), the government has set an ambitious target for scheduled commercial banks and non-banking financial companies (NBFCs) to provide an additional Rs 1.54 lakh crore in credit to MSMEs during the financial year 2024-25.
The goal is part of a broader plan to ramp up credit flows to the MSME sector over the next few years, with a target of Rs 5.75 lakh crore in FY25, Rs 6.21 lakh crore in FY26, and Rs 7 lakh crore by FY27.
Finance Minister Nirmala Sitharaman, speaking at the ‘National MSME Cluster Outreach’ programme, emphasized the critical role of MSMEs in India’s economic growth, job creation, and self-reliance.
Organized by the Department of Financial Services (DFS) in partnership with the Small Industries Development Bank of India (SIDBI), the event brought together entrepreneurs, financial experts, and policymakers to discuss strategies for enhancing MSME growth through improved access to finance.
Sitharaman urged financial institutions to go the extra mile in supporting the MSME sector, calling for a concerted effort to enhance credit access, especially to businesses in rural areas.
She stated, “MSMEs are the backbone of India’s economy, driving innovation and providing employment opportunities. It is crucial that financial institutions work proactively to meet the growing needs of this sector.”
Manjhi Highlights Govt’s Efforts To Strengthen MSME Ecosystem & Rural Credit Access
Union Minister for MSMEs, Jitan Ram Manjhi, also addressed the gathering. He stressed the government’s commitment to strengthening the MSME ecosystem.
Manjhi highlighted ongoing initiatives aimed at increasing access to credit for small businesses, particularly in rural regions, where financial support remains a significant challenge.
The virtual event connected around 150 MSME clusters across the country, with senior bank officials present at each location.
Sitharaman also took the opportunity to inaugurate six new SIDBI branches in Karnataka, aimed at improving financial services for MSMEs in the state.
In addition, she launched four Nari Shakti branches of Union Bank of India in Bengaluru, Chennai, Jaipur, and Vishakhapatnam, to empower women entrepreneurs.
These branches are part of the bank’s efforts to provide tailored financial services to female-led businesses.
Furthermore, Sitharaman inaugurated the Learning Centre of Canara Bank in Bagaluru, Bengaluru, designed to provide training and resources to entrepreneurs.
During the event, she distributed sanction letters totaling Rs 25.75 crore to 11 MSME customers of SIDBI, as well as Rs 11 crore in funding to two businesses through the Nari Shakti branches of Union Bank.
As part of its ongoing efforts to support MSMEs, SIDBI also signed a memorandum of understanding (MoU) with the Peenya Industries Association.
This collaboration aims to enhance MSME growth by offering capacity building programs, credit facilities, and knowledge-sharing initiatives.
