New Delhi: The government has expanded its support architecture for micro, small and medium enterprises (MSMEs), stressing that nearly 14.6 lakh MSME accounts were prevented from slipping into non-performing asset status under the Emergency Credit Line Guarantee Scheme (ECLGS).
According to an SBI research report cited by the Ministry of MSME, around 98.3% of these accounts belonged to micro and small units, highlighting the extent of financial stress faced by the sector during and after the pandemic.
The ministry informed Parliament that the Centre has undertaken a series of structural interventions over the past few years. These include revising the definition of MSMEs in 2020 and updating it further from April 1, 2025.
The government has also streamlined formalisation efforts through Udyam Registration, introduced in July 2020, and later expanded the MSME ecosystem by including retail and wholesale traders in July 2021. To bring informal micro enterprises into the formal credit net, the Udyam Assist Platform was launched in January 2023.
To strengthen credit flow, the Centre continues to operate multiple schemes such as the Prime Minister’s Employment Generation Programme (PMEGP), the Credit Guarantee Scheme for collateral-free loans up to ₹10 crore, and the Special Credit Linked Capital Subsidy Scheme for SC/ST-owned enterprises.
The government has also enabled collateral-free loans of up to ₹20 lakh for informal micro units and bolstered artisan support through PM Vishwakarma Yojana and Mudra loans.
The ministry has additionally emphasised technology adoption and competitiveness enhancement through the MSME Champions Scheme, which aims to modernise business processes, reduce wastage and improve global reach.
A network of Technology Centres and Extension Centres has been set up to offer consultancy, skilling, incubation and technology services to MSMEs across the cou ntry.