The Government of India has set a target for scheduled commercial banks and non-banking financial companies (NBFCs) to provide an additional Rs 1.54 lakh crore in loans to Micro, Small,
and Medium Enterprises (MSMEs) during the current financial year (FY 2024-25).
Finance Minister Nirmala Sitharaman announced that the goal for MSME loan growth will reach Rs 5.75 lakh crore in FY 2024-25, Rs 6.21 lakh crore in FY 2025-26, and Rs 7 lakh crore in FY 2026-27.
Focus on Innovation, Employment, and Self-Reliance
At the ‘National MSME Cluster Outreach’ event, held in collaboration with the Department of Financial Services, the Ministry of Finance,
and the Small Industries Development Bank of India (SIDBI), Finance Minister Sitharaman emphasized the crucial role of MSMEs in driving innovation, creating jobs, and contributing to the country’s self-reliance.
During the event, she engaged with entrepreneurs to explain how the government and financial institutions are supporting their growth. Sitharaman also urged banks to increase their efforts to provide loans to the MSME sector.
Government Initiatives and Support for MSMEs
Union MSME Minister Jitan Ram Manjhi spoke about the government’s initiatives to boost the MSME sector. He encouraged banks to focus on increasing loan access for small enterprises, especially in rural areas.
Additionally, Sitharaman virtually inaugurated six new SIDBI branches in Karnataka, expanding the bank’s support for MSMEs.
Sitharaman also inaugurated four Nari Shakti branches of Union Bank of India in Bengaluru, Chennai, Jaipur,
and Visakhapatnam, along with a learning center by Canara Bank in Bengaluru, aimed at empowering women entrepreneurs.
As part of the event, she handed over loan sanction letters worth Rs 25.75 crore to 11 MSME customers of SIDBI and Rs 11 crore to two MSME customers from the Nari Shakti branch of Union Bank of India.
