Breaking barriers, fuelling dreams: India’s MSME sector witnesses a transformative wave as women entrepreneurs rise and thrive! Explore how empowering initiatives and financial support are paving the way for women-led businesses to soar high and make their mark in the world of entrepreneurship.
In a recent written reply in the Rajya Sabha, Minister of State for Skill Development and Entrepreneurship Rajeev Chandrasekhar shared the Government’s efforts to support Micro, Small and Medium Enterprises (MSMEs) through various ongoing schemes. These measures include:
- Prime Minister’s Employment Generation Programme (PMEGP): It’s a credit linked subsidy program aimed at promoting self-employment.
- Credit Guarantee Scheme (CGS): The Ministry of MSME, Government of India is implementing a Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) through CGTMSE. In the inception till June 30th 2023, a cited data is held in account that represents, a total of 72.59 lakh guarantees amounting to Rs. 4.50 lakh crore have been approved out of which 15.10 lakh guarantees worth Rs. 65,209 crore have been extended to support and enhance women enterprise.
- Self Reliant India (SRI) Fund: A total amount of Rs. 50,000 crore to provide growth capital to eligible MSMEs. The Government of India has introduced the Self Reliant India (SRI) Fund amounting to Rs. 50,000 crore to provide equity funding to Micro, Small and Medium Enterprises (MSMEs). This fund consists of Rs. 10,000 crore from the government and Rs. 40,000 crore from Private Equity/Venture Capital Funds. The main aim is to offer growth to the eligible And deserving MSMEs. As of June 30th 2023, a total of 45 Daughter Funds have been enlisted with the NVCFL (Mother Fund). They have invested over Rs. 4,885 crore supporting 342 MSMEs of which 60 are owned by women. Additionally, the government is implementing various other schemes and programs for further support.
- Pradhan Mantri Mudra Yojana (PMMY) was launched by the Department of Financial Services, Ministry of Finance, on April 8th 2015, to provide collateral free loans up to Rs. 10 lakh to individuals for starting or expanding their businesses. The scheme offers loans in three categories: Shishu (up to Rs. 50,000), Kishore (above Rs. 50,000 and up to Rs. 5 lakh), and Tarun (above Rs. 5 lakh and up to Rs. 10 lakh). These loans can be used for various income-generating activities in manufacturing, trading, services, and allied agriculture. Member Lending Institutions (MLIs) such as Banks, NBFCs, MFIs, and other financial intermediaries provide these loans.
As of June 30th 2023, and since its inception, PMMY has disbursed over 42.20 crore loans amounting to Rs. 24.34 lakh crore. Out of this, more than 29.00 crore loans in total Rs. 10.96 lakh crore have been provided to Women Entrepreneurs.
The Stand Up India Scheme (SUPI) was launched by the Department of Financial Services, Ministry of Finance, on April 5th 2016, and it has been extended until 2025. The main objective of the scheme is to help Scheduled Caste (SC) and Scheduled Tribe (ST) borrowers and women entrepreneurs set up green field enterprises in manufacturing, services, trading, and allied agriculture sectors. It facilitates loans from Scheduled Commercial Banks (SCBs) ranging from Rs. 10 lakh to Rs. 1 crore for this purpose. The scheme also provides financial assistance without the need for collateral security through the Credit Guarantee Fund Scheme for Stand-Up India (CGFSI) managed by the National Credit Guarantee Trustee Company Ltd. (NCGTC) which is wholly owned by the Government of India.
These all initiatives collectively and independently aim to ensure sufficient financial accessibility and seamless credit flow to MSMEs, promoting entrepreneurship and growth in the world and sectors and enhancing women entrepreneurship in India on a wider scale.