Access to capital, technology adoption, competition, compliance, market access, infrastructure, supply chain, and the availability of skilled labour across 19 manufacturing, service, and trading sectors are some of the major issues
Role of MSMEs in Economic Development
Contribution to Gross Value Added: 30.1% for FY2022-23.
Export contribution: 45.79% in FY2024-25 (as of May 2024).
Key Issues in the MSME Sector
Limited access to credit: Owing to the absence of formalization, poor credit history, and unawareness of credit programs, inability to access capital markets due to necessary transparency and regulatory standards, etc.
Intense rivalry and technological integration: A swiftly changing business environment necessitates the adoption of innovative technologies, which is a
Significant obstacle, since numerous MSMEs do not possess the necessary resources and knowledge to utilize technology effectively.
Others: Complicated regulatory environment, insufficient infrastructure, expensive and inconsistent utility supply, challenges in sourcing basic materials and trained workforce.
Main initiatives for MSMEs
Union Budget 2025-26: Updated categorization of MSMEs, Credit Cards for Micro Enterprises, establishing a new Fund of Funds, improved Credit Assurance, National Production Objective to assist Clean Technology production, etc.
MSME Development Programs: Financing Scheme for Micro and Small Enterprises Guarantee Businesses, fresh Credit Evaluation
Framework for micro and small businesses derived from their online traces as revealed in the Union Budget of July 2024, etc.
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India’s Covid-19 cases go past 6,000, Central Govt ramps up emergency drills
Central Govt clears major iron-ore expansion in Maharastara’s Maoist-hit Gadchiroli tribal forests
Faridabad doctor posed as cardiologist, performed 50 surgeries without qualification
Pakistan’s UNSC bid falls flat, India rallies allies to block key terror panels
Manipur on edge as protesters threaten self-immolation over arrest of ethnic militia leader
India’s Shubhanshu Shukla joins pioneering space study to unlock diabetes care beyond Earth
RBI flags limited policy room after 50 bps rate cut, signals cautious road ahead
Bollywood icon Jeetendra sells 2.3-acre Mumbai Andheri land for ₹855 crore to tech giant
PM Modi opens world’s highest rail bridge, flags off Kashmir’s first Vande Bharat
SC pushes NEET PG to August 3, orders single-shift exam to restore fairness
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