The government has set a target for all scheduled commercial banks and Non-Banking Financial Companies (NBFCs) to provide additional MSME credit of Rs 1.54 lakh crore in the current financial year (FY25).
Finance Minister Nirmala Sitharaman outlined the target for total credit growth of Rs 5.75 lakh crore, Rs 6.21 lakh crore, and Rs 7 lakh crore to MSMEs in the financial years 2024-25, 2025-26, and 2026-27, respectively.
At the ‘National MSME Cluster Outreach’ program in Bengaluru, organized jointly by the Department of Financial Services (DFS), Ministry of Finance, and the Small Industries Development Bank of India (SIDBI), the minister emphasized the critical role of MSMEs in India’s economic growth, particularly in innovation, job creation, and contributing to the country’s self-reliance.
The Finance Minister also engaged with entrepreneurs, sharing insights on how the government and financial institutions can better support their growth and sustainability. She urged banks to go the extra mile in enhancing credit to the MSME sector.
Jitan Ram Manjhi, Union Minister for MSMEs, highlighted various government initiatives designed to bolster the MSME sector and urged banks to focus on extending more credit to small enterprises in rural areas.
Around 150 MSME clusters were connected virtually for the event, with senior bank officials present in each cluster.
FM Sitharaman also virtually inaugurated six new SIDBI branches in Karnataka, expanding SIDBI’s reach and financial assistance to MSMEs in these clusters. Additionally, she inaugurated four Nari Shakti Branches of Union Bank of India in Bengaluru, Chennai, Jaipur, and Vishakhapatnam, aimed at empowering women entrepreneurs. She also inaugurated the Learning Centre of Canara Bank at Bagaluru, Bengaluru.
FM Sitharaman distributed sanction letters to 11 MSME customers of SIDBI, totaling Rs 25.75 crore, and two sanction letters to MSME customers of the Nari Shakti Branch of Union Bank of India, totaling Rs 11 crore.
During the event, SIDBI signed a memorandum of understanding (MoU) with the Peenya Industries Association to strengthen collaboration in supporting MSMEs through capacity building, credit facilities, and knowledge-sharing.
(Inputs from IANS)