Govt considers measures to boost MSMEs

The central government is considering a slew of measures to boost Indian micro, small and medium enterprises (MSMEs), which include policy measures to integrate them with international markets, digital support for global competitiveness, ease of compliance on Goods and Services Tax (GST) laws, and providing low-cost credit, two officials said.

- Rajeev Jayaswal

The measures are expected to be announced in the interim budget on February 1, the officials said, requesting anonymity.

It is likely that the government may announce its intent in the interim budget, but details of the schemes could be unveiled later in the full budget for 2024-25 by July, one of them said.

"The high cost of credit is the single biggest roadblock in the growth of MSMEs, which could range between 15% and 28%, depending on the nature of financial institution. The Emergency Credit Line Guarantee Scheme (ECLGS) was good, but it helped a fraction of the ₹6.5 crore MSMEs as it supported only those who had existing loans.