The North News
New Delhi, March 4
Prime Minister Narendra Modi on Tuesday underscored the vital role of Micro, Small and Medium Enterprises (MSMEs) in driving India’s manufacturing and industrial growth, as he announced new measures to support the sector’s expansion.Modi said the government revised the definition of MSMEs in 2020 after 14 years, removing fears that growth would lead to a loss of government benefits. Since then, the number of MSMEs has risen to over six crore, providing significant employment opportunities.
“This budget has further expanded the MSME definition, instilling confidence in their continuous growth and creating more jobs for the youth,” Modi said during a post-budget webinar titled ‘MSME as an Engine of Growth’.
The Prime Minister said the government had doubled the loan guarantee cover for MSMEs to ₹20 crore and introduced customised credit cards with a ₹5 lakh limit to meet working capital needs. He emphasised that the ease of accessing loans, including those without guarantees under schemes like MUDRA, had boosted small businesses.
Highlighting the need for innovative credit delivery models, Modi announced loans of ₹2 crore for five lakh first-time entrepreneurs from women, Scheduled Caste, and Scheduled Tribe communities. He called on the industry to develop a mentorship programme to guide new entrepreneurs.
While addressing the post- budget webinars through video conferencing on MSME as an Engine of Growth; Manufacturing, Exports and Nuclear Energy Missions; Regulatory, Investment and Ease of doing business Reforms, the Prime Minister also urged states to compete in promoting ease of doing business, noting that investor-friendly policies would attract greater investment and benefit local economies. Discussing the manufacturing and export sectors, Modi stressed that the government’s consistency in reforms and financial discipline over the past decade had strengthened industry confidence. He said the government had exceeded expectations with its latest budget, introducing initiatives to support manufacturing, exports, and economic stability.
Modi said India’s resilience during global economic challenges, including the COVID-19 pandemic, demonstrated its strength as a growth engine. He encouraged industries to take advantage of India’s friendly policies and contribute to global supply chains.
He highlighted the success of the Production Linked Incentive (PLI) scheme, which has attracted investments of over ₹1.5 lakh crore, generated production worth over ₹13 lakh crore, and boosted exports to over ₹5 lakh crore.
Modi announced the launch of two new missions focused on enhancing manufacturing and export performance, with an emphasis on adopting better technology, improving product quality, and skilling the workforce.
