PM Modi Emphasizes Need for New Credit Delivery Modes for MSMEs; Announces Rs 2 Crore Loans for Women, SC, and ST Entrepreneurs

Prime Minister Narendra Modi on Tuesday highlighted the necessity of developing innovative modes of credit delivery to provide timely and affordable funds to over six crore Micro, Small, and Medium Enterprises (MSMEs) in India. The announcement came during a post-Budget webinar focused specifically on the MSME sector.

PM Modi unveiled plans to empower five lakh first-time entrepreneurs from women, Scheduled Castes (SC), and Scheduled Tribes (ST), offering loans of up to Rs 2 crore each. "We need to develop new modes for credit delivery, ensuring MSMEs have access to low-cost and timely credit. Five lakh first-time women, SC, and ST entrepreneurs will be provided loans of up to Rs 2 crore," said the Prime Minister.

Guidance and Mentorship for MSMEs​

Recognizing that MSMEs require more than just credit facilities, the Prime Minister underscored the importance of mentorship and guidance. He urged industries to establish structured mentorship programs to effectively support MSMEs in navigating business challenges.

India as a Global Growth Centre​

In the backdrop of ongoing global political uncertainties, PM Modi pointed out that the international community views India as a pivotal "growth centre." This global focus on India presents unique opportunities for the country's manufacturing sector.

Production-Linked Incentive (PLI) Scheme Success​

Highlighting the success of the Production-Linked Incentive (PLI) scheme, PM Modi informed participants that the initiative, which covers 14 key sectors, has already led to investments exceeding Rs 1.5 lakh crore. Consequently, the scheme facilitated total production valued at more than Rs 13 lakh crore, significantly boosting India's manufacturing ecosystem.

Easing Business Regulations​

The Prime Minister also noted the government's efforts to simplify regulatory frameworks, mentioning the removal of over 40,000 compliances at both central and state levels. This significant reduction has enhanced India's ease of doing business, opening new avenues for manufacturing and exports.

"Today every country wants to strengthen its economic partnership with India. Our manufacturing sector must take advantage of this opportunity," PM Modi concluded, emphasizing India's favorable position in global trade dynamics.