The government sets ambitious credit growth targets for MSMEs

By Staff Report November 12, 2024 3:48 pm

The Indian government has set credit growth targets for Micro, Small, and Medium Enterprises (MSMEs), mandating additional credit of ₹1.54 lakh crore in FY25 and total credit growth of ₹5.75 lakh crore, ₹6.21 lakh crore, and ₹7 lakh crore.

The government issued significant credit growth targets for MSMEs, mandating scheduled commercial banks and NBFCs to provide an additional credit of ₹ 1.54 lakh crore in FY25.

Finance Minister Nirmala Sitharaman has set targets for total credit growth of ₹ 5.75 lakh crore, ₹ 6.21 lakh crore, and ₹ 7 lakh crore to MSMEs in the financial years 2024-25, 2025-26, and 2026-27.

The statement came during the ‘National MSME Cluster Outreach’ program in Bengaluru, which was co-organized by the Department of Financial Services and the Small Industries Development Bank of India (SIDBI). During the event, which virtually united 150 MSME clusters, the Finance Minister underlined MSMEs’ critical role in promoting economic growth, innovation, job creation, and self-sufficiency.

Jitan Ram Manjhi, Union Minister for MSMEs, discussed several government efforts and urged banks to improve their focus on rural enterprise lending.

The program saw the inauguration of six new SIDBI branches in Karnataka and four Nari Shakti branches of Union Bank of India, aimed at supporting women entrepreneurs.  Canara Bank has inaugurated a new Learning Centre in Bagaluru, Bengaluru, aimed at enhancing the financial infrastructure for MSMEs.

The Finance Minister distributed ₹ 25.75 crore sanction letters to 11 MSME customers via SIDBI and an additional ₹ 11 crore to two through Union Bank of India’s Nari Shakti Branch, demonstrating immediate impact. The event also involved SIDBI signing a memorandum of understanding with the Peenya Industries Association.