The government has approved more than 5.27 lakh guarantees amounting to Rs 92,000 crore for MSMEs in February–March this year. This move showcases strong institutional backing for the sector amidst global challenges arising from the West Asia conflict. Over 20 lakh MSMEs were newly registered on the ministry’s Udyam portal during the same period, bringing the total registered enterprises to over 8 crore, highlighting sustained entrepreneurial activity nationwide.
The outstanding lending to MSMEs has surpassed Rs 36.7 lakh crore, with a quarterly growth of 23.5 percent. This growth signifies an enhanced credit flow despite global uncertainties. To improve access to finance, the collateral-free lending limit for micro and small enterprises has been doubled from Rs 10 lakh to Rs 20 lakh, effective April 1, benefiting small entrepreneurs and first-time borrowers.
In a significant move to boost financial access, the Trade Receivables Discounting System (TReDS) platform has seen substantial growth. Invoice discounting has surged from Rs 4,300 crore in 2022 to over Rs 7 lakh crore presently, with Rs 85,000 crore in February–March alone. This underscores the increasing adoption of digital financing solutions. The government is dedicated to providing adequate support to MSMEs through cohesive policy measures, especially in light of evolving global challenges, including the West Asia situation.
The government has extended the increase in the commercial LPG limit to 70 percent of the pre-March 2026 bulk consumption level to industrial units in various sectors like pharma, food, polymer, agriculture, packaging, paint, uranium, heavy water, steel, seed, metal, ceramic, foundry, forging, glass, and aerosol. The Ministry of Coal has instructed Coal India and Singareni Collieries to provide additional coal to states for distribution to small and medium consumers. States have been urged to facilitate new PNG connections for domestic and commercial consumers. The Ministry of MSME will continue collaborating with stakeholders to fortify the resilience, competitiveness, and growth of the sector.
