Business

Government Sets Ambitious Target To Boost MSME Credit; Aims For Rs 1.54 Lakh Crore In FY25

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.

Also Read: Punjab Police Arrest Two Associates Of Canada-Based Gangster Arsh Dalla In Major Anti-Crime Operation

Mankrit Kaur

Recent Posts

Pakistan’s Digital Frontline: Jokes, Memes And Savage Self-Roasts

While tensions between India and Pakistan escalate post the tragic Pahalgam terror attack, something unexpected…

8 hours ago

Reliance Industries Q4 Net Profit Rises 6.4% As Retail And Digital Units Offset Energy Weakness

Reliance Industries delivered a strong Q4 FY25 performance, with Y-o-Y net profit rising 6.4% to…

8 hours ago

Yash Pratap Singh And Mehak Jaiswal Top UP Board Exams With Outstanding Scores

Yash Pratap Singh of Jalaun tops Class 10 with 97.83%, while Prayagraj’s Mehak Jaiswal secures…

8 hours ago

Yogi Adityanath Calls For Reforms To Make Madrasa Education Modern And Employment-Oriented

Chief Minister Yogi Adityanath on Friday emphasised the need for sweeping reforms in the madrasa…

9 hours ago

Tulsi Gabbard Backs India’s Hunt For Pahalgam Terror Attack Perpetrators

United States Director of National Intelligence (DNI) Tulsi Gabbard on Friday expressed strong support for…

9 hours ago

World Leaders Head To Rome For funeral Of Pope Francis

Indian President Droupadi Murmu will also attend, representing India alongside Union Minister Kiren Rijiju, Minister…

10 hours ago