India pushes banks and new schemes to expand MSME credit and sustainability

Minister Jitan Ram Manjhi called on banks and financial institutions to widen credit for micro, small and medium enterprises (MSMEs) during a two‑day visit to Puducherry. He highlighted that MSMEs contribute about 31.1% of India’s GDP and noted a credit gap of roughly Rs 20‑30 lakh crore, with only 16% of the sector accessing formal finance. The minister’s directives focused on five pillars – technology, credit, skill development, market access and infrastructure – and involved officials from the MSME Ministry, state banks, and industry bodies.

Joint Secretary Mercy Epao outlined additional government measures to strengthen MSMEs, including the Green Investment and Finance and Technology (GIFT) scheme to promote greener production, support for Industry 4.0 through technology centres and the National Institute for Micro, Small and Medium Enterprises (NIMSME), and plans for an MSME Export Centre in Hyderabad to assist firms in entering global markets. The ministry also aims to reimburse export‑related fees for first‑time exporters and to leverage India’s free‑trade agreements and BRICS partnerships.

Together, the initiatives aim to address the financing shortfall, boost technology adoption, and expand export opportunities for Indian MSMEs.