The Government of India has directed 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 (2024-25).
Finance Minister Nirmala Sitharaman announced ambitious goals for MSME loan growth, setting a target of Rs 5.75 lakh crore for FY 2024-25, Rs 6.21 lakh crore for FY 2025-26, and Rs 7 lakh crore for FY 2026-27.
Focus on Innovation, Employment, and Self-Reliance
At the ‘National MSME Cluster Outreach’ event, organized with the Department of Financial Services, Ministry of Finance,
and the Small Industries Development Bank of India (SIDBI), Sitharaman highlighted the importance of MSMEs in promoting innovation, job creation, and self-reliance in India.
She engaged with entrepreneurs to explain how the government and financial institutions are supporting MSME growth, encouraging banks to increase loan access for this sector.
New Initiatives to Support MSME Growth
Union MSME Minister Jitan Ram Manjhi also emphasized government efforts to strengthen the MSME sector, particularly in rural areas.
In her address, Sitharaman inaugurated six new SIDBI branches in Karnataka to expand support for MSMEs
and four Nari Shakti branches of Union Bank of India in Bengaluru, Chennai, Jaipur, and Visakhapatnam to empower women entrepreneurs.
She also launched a learning center by Canara Bank in Bengaluru to assist women in business.
During the event, Sitharaman distributed loan sanction letters worth Rs 25.75 crore to 11 SIDBI MSME customers
and Rs 11 crore to two MSME clients from the Nari Shakti branch of Union Bank of India, reinforcing the government’s commitment to the sector.
