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

Musk-Trump Fallout Threatens NASA And Pentagon Operations: Report

A recent fued between Elon Musk and former US President Donald Trump has raised serious…

28 mins ago

Rajeshwar Singh Honoured With ‘Excellence In Political & Public Life’ Award At House Of Lords

Rajeshwar Singh was honoured with the ‘Excellence in Political and Public Life’ Award at the…

30 mins ago

EaseMyTrip Launches ‘EMT Invest’ To Back Profitable Businesses: CEO Nishant Pitti

India’s leading travel tech company, EaseMyTrip, has launched a new investment platform named ‘EMT Invest’,…

36 mins ago

MyGov Launches Exciting Contests To Celebrate 11 Years Of Transformative Governance

Marking 11 years of transformative governance, citizen engagement platform MyGov has launched a series of…

3 hours ago

President Murmu And PM Modi Extend Eid Al-Adha Wishes, Call For Unity And Service

On Saturday, President Droupadi Murmu and PM Modi extended warm wishes to citizens on occasion…

3 hours ago

JD Vance Resignation Claim Is False; Confirms No Credible Source

Viral claims about US Vice President JD Vance resigning due to tensions between Donald Trump…

4 hours ago