In a major boost to the Micro, Small, and Medium Enterprises (MSME) sector, the government has outlined ambitious credit growth targets, mandating scheduled commercial banks and Non-Banking Financial Companies (NBFCs) to extend additional credit of Rs 1.54 lakh crore in the current financial year (FY25). Finance Minister Nirmala Sitharaman announced a robust three-year credit roadmap for MSMEs, with targets of Rs 5.75 lakh crore in FY25, Rs 6.21 lakh crore in FY26, and Rs 7 lakh crore by FY27.
The announcement was made during the 'National MSME Cluster Outreach' event in Bengaluru, organized by the Department of Financial Services and the Small Industries Development Bank of India (SIDBI). Addressing 150 MSME clusters, the Finance Minister highlighted the pivotal role of MSMEs in fostering economic growth, job creation, and self-reliance. Union Minister for MSMEs, Jitan Ram Manjhi, urged banks to focus on increasing credit access for rural enterprises and outlined initiatives to bolster MSME growth.
Several key inaugurations took place at the event, including six new SIDBI branches in Karnataka, four Nari Shakti Branches by Union Bank of India focused on women entrepreneurs, and a new Canara Bank Learning Centre in Bagaluru, Bengaluru.
In a move demonstrating immediate impact, Finance Minister Sitharaman presented Rs 25.75 crore in sanction letters to 11 MSME customers through SIDBI, along with Rs 11 crore to two customers through Union Bank's Nari Shakti Branch.
Additionally, SIDBI signed a Memorandum of Understanding with the Peenya Industries Association to support MSMEs with enhanced credit facilities, capacity building, and knowledge-sharing efforts.
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