Prime Minister Narendra Modi on Tuesday emphasized the need for innovative credit delivery models to provide timely and low-cost financing to over six crore MSMEs across India. Speaking at a post-Budget webinar on MSMEs, he announced that five lakh first-time women, SC, and ST entrepreneurs will be provided loans of up to ₹2 crore, as part of efforts to make business financing more inclusive and accessible.
Ensuring Affordable and Timely Credit for MSMEs
Addressing the critical role of MSMEs in India’s economy, Modi stressed that small businesses not only require credit but also mentorship and guidance. He urged industries to establish mentorship programs that can help entrepreneurs navigate business challenges and enhance financial literacy.
“We need to develop new modes for credit delivery, ensuring MSMEs have access to low-cost and timely credit. Five lakh first-time women, SC, and ST entrepreneurs will be provided loans of up to ₹2 crore,” the Prime Minister said.
India Positioned as a Global Growth Hub
Amid global economic uncertainties, Modi highlighted that the world sees India as a key growth center. With rising investments and an expanding industrial base, India has the opportunity to strengthen its position as a global manufacturing and export hub.
He pointed to the success of the Production-Linked Incentive (PLI) scheme, which has attracted ₹1.5 lakh crore in investments and resulted in total production worth ₹13 lakh crore across 14 sectors.
Ease of Doing Business Reforms to Support MSMEs
Modi also highlighted the government’s commitment to reducing bureaucratic hurdles for MSMEs.
- Over 40,000 compliances have been eliminated at both the central and state levels, significantly improving the ease of doing business.
- Policies are being designed to open new avenues for manufacturing and exports, allowing Indian businesses to compete on a global scale.
“Today, every country wants to strengthen its economic partnership with India. Our manufacturing sector must take advantage of this opportunity,” Modi said, urging MSMEs to leverage international trade opportunities.
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Strengthening India’s MSME Ecosystem
With access to affordable credit, simplified regulations, and increasing global demand, India’s MSMEs are set to play a transformative role in the country’s economic growth. Modi’s call for innovative financing solutions and mentorship programs signals a strong push towards financial inclusion and sustainable business expansion for small and medium enterprises across the nation.