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- Government Undertakes Multiple Initiatives to Strengthen Rural and Semi-Urban MSMEs
Submitted By: Shweta Verma
Government Undertakes Multiple Initiatives to Strengthen Rural and Semi-Urban MSMEs
A comprehensive policy framework is designed to strengthen the MSME ecosystem through financial, regulatory, and digital interventions. Key financial measures include the Credit Guarantee Scheme with coverage up to ₹10 crore, the Self-Reliant India (SRI) Fund (boosted by an additional ₹2,000 crore in the 2026-27 Budget for risk capital), and the legacy success of the ECLGS, which supported over 1.13 crore enterprises. To safeguard liquidity, the government enforces the 45-day payment mandate via the SAMADHAAN Portal, while the Udyam Assist Platform and the inclusion of retail traders under Priority Sector Lending have expanded formal credit access. Furthermore, the ecosystem is bolstered by massive digitalization efforts through portals like TReDS and GeM, alongside specialized support for grassroots entrepreneurs through PMEGP’s 35% margin money subsidy and the PM Vishwakarma Scheme, which provides artisans with holistic training and low-interest loans up to ₹3 lakh.
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