Question

Explain key measures initiated by the Government for strengthening MSMEs.

Hint:

Government schemes like Udyam, PMEGP, and Public Procurement Policy are designed to make MSMEs competitive, self-reliant, and innovation-driven.

Answer 1

The Government of India has introduced several schemes and policy measures under Union Budget 2025–26 and earlier to strengthen the MSME sector. These include:
Udyam Registration Portal: Simplified online platform for MSME registration and access to benefits like collateral-free loans and subsidies.
PM Vishwakarma Scheme: Aims to support traditional artisans and craftsmen with financial aid, training, and market access.
PMEGP (Prime Minister’s Employment Generation Programme): Provides credit-linked subsidy for micro-enterprises to promote self-employment.
SFURTI (Scheme of Fund for Regeneration of Traditional Industries): Supports cluster-based development of traditional industries to enhance productivity and competitiveness.
Public Procurement Policy: Mandates that a minimum percentage of government procurement be made from MSMEs, thereby boosting market access and revenue.
Access to Credit and Technology: Government has announced provisions for cheaper credit, integration with digital platforms, and encouragement for innovation and start-ups.
These initiatives reflect the government's commitment to empowering MSMEs by improving access to finance, technology, and markets.