More than 34 crore jobs created in MSMEs: Union Minister

New Delhi, July 21 (IANS) More than 34 crore people have got employment in micro, small and medium enterprises (MSMEs) through the Udyam and Udyam Assist portals since 2014, Union Minister Jitan Ram Manjhi stated in the Rajya Sabha on Monday.

The Minister of MSMEs said, in response to an MP’s question on the floor of the House, that there was no shortage of money and workers of small enterprises, such as cobblers, have got financial assistance under various programmes such as the PM’s Vishwakarma scheme.

The government considers the MSME sector as the backbone of India's manufacturing and industrial growth and is focusing on strengthening this sector to promote inclusive growth.

The government made a significant decision to revise the definition of MSMEs after 14 years, which eliminated the fear among MSMEs that they would lose government benefits if they grew.

The number of MSMEs in the country has increased to over 6 crore, providing employment opportunities to crores. The definition of MSMEs has been further expanded to make it easier for them to get loans.

PM Modi recently said that ten years ago, MSMEs received loans worth approximately Rs 12 lakh crore, which has now increased to around Rs 30 lakh crore.

The Prime Minister announced that in the budget, the guarantee cover for MSME loans has been doubled to Rs 20 crore. Additionally, customised credit cards with a limit of Rs 5 lakh will be provided to meet working capital needs.

Meanwhile, NITI Aayog has also released a detailed report for unlocking the immense potential of India’s MSMEs through systemic reforms in financing, skilling, innovation and market access.

India's MSMEs can become a key driver of sustainable economic growth by focusing on targeted interventions, building stronger institutional collaborations and enhancing global competitiveness, the report states.

One of the important findings of the report is the notable improvement in MSMEs' access to formal credit. Between 2020 and 2024, the share of micro and small enterprises accessing credit through scheduled banks rose from 14 per cent to 20 per cent, while medium enterprises saw an increase from 4 per cent to 9 per cent.

--IANS

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