Credit and Finance for MSMEs: According to B B Swain, Secretary to the Union Ministry of Micro, Small and Medium Enterprises (MSMEs), the government in the Union Budget 2023-24 has given a boost to the fund-starved MSME sector by facilitating larger credit flow and simplifying compliances. The minister also stated that the government recognises the importance of MSMEs in the country’s economic progress.
Swain was speaking at the India Expo Centre in Greater Noida on Wednesday, the first day of the three-day Indian Foundry Congress (IFC) and India Foundry Equipment Exhibition (IFEX) organised by the Institute of Indian Foundrymen (IIF).
The key issues of the MSME sector are connected to credit/fund availability, accessibility, and affordability.
“The government has recognised the significance of MSMEs to the country’s economic progress. “By increasing credit flow and streamlining compliances, the Union Budget 2023-24 has offered a boost to the fund-starved sector,” Swain stated.
In reference to the Budget 2023 announcement of a new credit guarantee plan costing Rs 9,000 crore for MSMEs, he stated that it will provide collateral-free lending of Rs 2 lakh crore loans to small enterprises.
“Moreover, by cutting the guarantee charge to 1.3 per cent, the government has facilitated collateral credit/funding for the MSMEs. This will help the sector significantly. “These measures have the potential to alter the game,” he remarked.