Government Announces Rise in MSME Registrations, 5 Cr Registered Compared to 1.65 Cr Last Year The government plans to increase CGTMSE credit guarantees by INR 5 lakh crore over the next two years to support MSMEs.
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The government has made remarkable progress in formalising the MSME sector, which previously had an estimated 6.5-7 crore MSMEs, but only 1.63 crore were registered, said Dr Rajneesh, Additional Secretary and Development Commissioner (MSME), Ministry of MSME, addressing the 'FICCI CMSME National Conference 2024'.
Rajneesh highlighted significant strides in the formalisation and support of MSMEs. "As of date, the total number of registered MSMEs with the ministry in more than 1 year has increased from 1.65 crore to 5 crore, bridging the large formalisation gap," he said.
Rajneesh also emphasised improvements in bridging the credit gap for MSMEs. He explained that the government's efforts focus on both the availability and cost of credit.
The 'Credit Guarantee Trust for Micro and Small Enterprises' (CGTMSE) is a body that provides credit guarantees for MSMEs and helps in collateral-free loans for MSMEs.
"In a span of 22 years, the cumulative credit guarantees extended by CGTMSE amount was INR 2.6 lakh crores. But in the last 2 years, we have been able to give credit guarantees worth INR 4 lakh crore, and in the next 2 years, we intend to ramp it up to another INR 5 lakh crore," Rajneesh noted.
According to Rajneesh, India's aspiration to become an advanced economy is closely tied to the development of its MSME sector, which contributes about 30% to national GDP, 36% to manufacturing, and 44% to exports, while providing 21 crore jobs.
"After agriculture, MSMEs are the largest employer in the economy. MSMEs are a part of the story of India's economic resilience," he emphasised.
In addition, Chakravarthy T Kannan from the Quality Council of India (QCI) stressed the importance of AI and innovation, advocating for a 'Universal Quality Interface' to support MSMEs.
"ONDC is getting reconstituted, and we are also collaborating with them on how ONDC can become a platform for MSMEs with quality guarantees. Indian MSMEs are poised to grow multi-fold, and QCI is eager to participate with the industry to be a part of the journey to Viksit Bharat," he added.
Girish Luthra, President, FICCI-CMSME, stressed on bringing the Japanese quality circles for all the MSMEs in the country.
