Mos Highlights MSME Credit & Procurement Support Dismisses Large-Scale Shutdown Claims

(MENAFN- KNN India) New Delhi, Mar 23 (KNN) Minister of State for MSMEs Shobha Karandlaje told the Rajya Sabha today that several initiatives have been implemented to support the sector, including credit support under the Emergency Credit Line Guarantee Scheme (ECLGS), credit guarantees for loans up to Rs 10 crore, and a Rs 50,000 crore equity infusion through the Self-Reliant India Fund.

She added that other measures include extending priority sector lending benefits to retail and wholesale traders, launching the Udyam Assist Platform to formalise informal enterprises, and restricting global tenders up to Rs 200 crore to support domestic businesses.

Protection in Government Procurement

The minister said a robust policy framework is in place to protect MSMEs in public procurement. Under the Public Procurement Policy, at least 25 per cent of procurement by central ministries and public sector enterprises is reserved for micro and small enterprises, with sub-targets for SC/ST and women entrepreneurs.

Additional support includes price preference mechanisms, exemption from tender fees, promotion of domestic suppliers under the 'Make in India' policy, and enhanced access through the Government e-Marketplace (GeM).

Ongoing Monitoring and Market Access Support

Procurement performance is monitored through dedicated portals, while schemes such as the Procurement and Marketing Support Scheme help MSMEs participate in trade fairs, adopt modern packaging, and access e-commerce platforms.

MSME Closures Lower Than Reported

Karandlaje emphasised that the reported large-scale shutdown of MSMEs is not substantiated by official data.

As per the Udyam Registration portal, around 58,403 MSMEs were reported closed or de-registered during 2025–26 (till February 28), against 1.63 crore new registrations in the same period.

She noted that closures on the portal may also reflect reasons such as ownership changes, duplicate registrations, or voluntary deregistration.

The minister highlighted that no specific assessment study has been conducted on large-scale shutdowns or the impact of recent trade deals on MSMEs.

However, she added that stakeholder consultations and sectoral assessments are undertaken during trade negotiations to safeguard MSME interests and improve market access.

(KNN Bureau)

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