MSME Day 2023: Government's 8 Key Initiatives To Empower MSMEs

India is the 5th largest economy and Micro, small and medium Enterprises (MSMEs) are considered the backbone of the Indian economy. These are the initiative introduced by government in the past to help new businesses.

Raising and Accelerating MSME Performance (RAMP) scheme, launched in 2022, is a World Bank-supported scheme to strengthen governance at the centre and the state, technological upgradation and easier access to credit and finance to MSMEs.

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Udyam portal, launched in 2020, enables MSMEs to register their enterprises with the government and provides paperless and free-of-cost registration facilities.

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Emergency Credit Line Guarantee Scheme (ECLGS), launched during covid crisis, provided 100 percent guarantee coverage to the banks and NBFCs, to encourage them to lend to MSMEs who were facing a liquidity crunch due to delayed payments and lockdowns in several markets.

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Zed (Zero Defect, Zero Effect) scheme, launched in 2016, is built around creating awareness and assessment and certification of MSMEs to promote ZED-based practices on “Zero Defect, Zero Effect,” focusing on producing high-quality products sustainably.

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Government e-Marketplace (GeM), a digital public procurement platform, launched in 2016, urges every government ministry, department, and central public sector enterprise (CPSEs) to procure goods and services digitally from the platform.

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Mudra Yojana, launched in 2015, provides non-collateral loans of upto ₹10 lakh to non-farming, non-corporate small and micro enterprises, in order to support small entrepreneurs and can be used for starting a new business or for an existing business.

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PM Employment Generation Program (PMEGP), launched in 2008, is a credit-linked guarantee scheme which provides credit up to ₹50 lakh (increased from earlier up to ₹25 lakh) to aspiring entrepreneurs for launching their new manufacturing units and up to ₹20 lakh (from ₹10 lakh earlier) for new service units.

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Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) provided collateral-free loans by providing a guarantee cover of up to 75 percent for loans amounting to ₹5 crores to first-generation entrepreneurs.

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