Credit guarantee scheme beneficiaries to triple by 2029: Union Minister
The Micro, Small and Medium Enterprises (MSME) sector continues to play a pivotal role in India’s economic landscape, contributing significantly to GDP, manufacturing, and exports, said Union Minister for MSMEs Jitan Ram Manjhi.
“MSMEs contribute 30.1% to India’s GDP, account for 35.4% of the country’s manufacturing output, and make up 45.73% of exports. “The MSME sector stands as the second-largest contributor to India’s economy,” a statement quoting Manjhi said.
Citing data from the Udyam Portal, launched in July 2020, he noted that it has recorded over 3.80 crore MSME registrations. In addition, the Udyam Assist Portal—launched in January 2023 to bring informal micro-enterprises into the formal economy—has registered more than 2.72 crore units. Together, these 6.5 crore MSMEs have generated employment for approximately 28 crore people.
“The number of MSMEs has increased fifteenfold over the last five years,” Manjhi said, underlining the government’s efforts toward inclusivity and formalization.
He also highlighted the PM Vishwakarma Scheme, which provides end-to-end support to artisans and craftspeople across 18 traditional trades, and the Prime Minister Employment Generation Programme (PMEGP), which has created jobs for 80.33 lakh individuals—80% of them in rural areas.
In terms of credit facilitation, over 1.18 crore credit guarantees worth ₹9.80 lakh crore have been approved under the Credit Guarantee Scheme (CGS) since its inception. A record ₹3 lakh crore in guarantees was issued during the 2024–25 financial year alone. Manjhi projected that the number of CGS beneficiaries will triple by 2029 and emphasized special provisions for women, SC, and ST entrepreneurs.
He also noted significant progress in resolving delayed payment issues, with cases on the MSME Samadhaan portal dropping from 93,000 in October 2017 to 44,000 at present.
