The government plans to increase credit guarantees for micro and small enterprises by an additional Rs 5 lakh crore over the next two years through the CGTMSE scheme, a top official announced on Tuesday. Rajneesh, Additional Secretary and Development Commissioner (Micro, Small, and Medium Enterprises), stated that credit guarantees worth Rs 4 lakh crore were extended in the past two years via the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
He further mentioned that the government has significantly bridged the gap in the formalization of MSMEs over the past few years, with the total number of Udyam-registered MSMEs increasing to 5 crore from 1.65 crore units just a year ago.
“The government initiated a concerted drive in collaboration with state governments and industry associations. As of now, the total number of registered MSMEs with the ministry has risen from 1.65 crore to 5 crore in just over a year, effectively bridging the large formalization gap,” Rajneesh said.
Addressing the event, Chakravarthy T Kannan, Secretary General of the Quality Council of India (QCI), emphasized the need to develop a quality interface called the ‘Universal Quality Interface,’ similar to UPI, to support the decision-making process of OEMs based on the ZED progression.
“ONDC (Open Network for Digital Commerce) is getting reconstituted, and we are also collaborating with them on how ONDC can become a platform for MSMEs with quality guarantee. Indian MSMEs are poised to grow multi-fold and QCI is eager to participate with the industry to be a part of the journey to Viksit Bharat,” he added.
The MSME Sustainable (ZED) Certification is a comprehensive initiative aimed at raising awareness among MSMEs about Zero Defect Zero Effect (ZED) practices. It seeks to motivate and incentivize them to achieve ZED Certification while also encouraging them to become MSME Champions.
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was jointly established by the Ministry of Micro, Small & Medium Enterprises and the Small Industries Development Bank of India (SIDBI) to facilitate the flow of institutional credit to micro and small enterprises.