No Shortage of Funds for MSMEs: Assures Minister Jitan Ram Manjhi

As the Union Budget draws near, Union MSME Minister Jitan Ram Manjhi delivered a strong message of assurance to the country’s thriving Micro, Small, and Medium Enterprises (MSMEs). He stated that there is “no shortage of funds” for the sector, emphasizing Prime Minister Narendra Modi’s commitment to bolstering the backbone of India’s economy.

Here TICE brings you highlights from his address. 

“The MSME sector remains a top priority for the government,” Manjhi declared, addressing entrepreneurs and stakeholders alike. With millions depending on the sector for their livelihood, the minister’s words come as a beacon of hope, especially in a time of evolving financial challenges and expectations from the upcoming budget.

Funds for MSMEs

The minister’s confidence stems from the government’s track record of effective fund utilization for MSMEs. Manjhi revealed that his ministry had proposed an additional ₹700 crore under the National SC-ST Hub Scheme, in addition to the existing ₹800 crore allocation, during a recent meeting with Finance Minister Nirmala Sitharaman.

Highlighting the scheme’s success, he stated, “The funds under this initiative have been utilized effectively, and we aim to expand its reach and impact by seeking additional support.”

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The National SC-ST Hub Scheme: Strengthening Inclusivity

Implemented by the National Small Industries Corporation Ltd. (NSIC), the National SC-ST Hub Scheme plays a pivotal role in empowering entrepreneurs from marginalized communities. By offering technological upgrades, capacity-building initiatives, and financial assistance, the scheme is a stepping stone for SC-ST entrepreneurs aiming to make their mark in the competitive business landscape.

A Sector Scaling New Heights

Manjhi also shared insights on the growth trajectory of MSMEs. The number of registered MSMEs has risen significantly to 5.6 crore, a dramatic jump from the 4 crore registrations when he took office. This growth reflects the increasing trust in government initiatives and the sector’s resilience amid challenges.

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Further, the 2024 Union Budget introduced a landmark credit guarantee scheme, which provides collateral-free loans with guarantees of up to ₹100 crore for manufacturing enterprises. Such measures are crucial in addressing liquidity issues and enabling businesses to scale operations.

The Backbone of India’s Economy

The MSME sector accounts for 30% of India’s GDP and employs over 11 crore people, making it a cornerstone of economic stability and growth. Minister Manjhi’s reassurances come at a critical juncture when the sector looks to further capitalize on policy support and funding.

The government’s consistent focus on innovation, inclusivity, and sustainability in the MSME landscape highlights its intent to drive comprehensive economic progress.

What’s Next for MSMEs?

With the Union Budget on the horizon, stakeholders eagerly await new announcements and additional measures to propel the MSME sector further. Minister Manjhi’s assertion of adequate funding and effective resource utilization underscores the government’s commitment to fostering an environment where MSMEs can thrive.

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As India advances on its economic journey, the message is clear: MSMEs remain the heart of the nation’s entrepreneurial spirit, and the government is committed to ensuring they never miss a beat.

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