India is finalizing a historic MSME reform package aimed at boosting credit access, simplifying compliance, and enhancing global competitiveness.
Key Highlights:
- Compact Credit Guarantee Scheme: A 100% government-backed credit cover for MSMEs is expected by Q4 FY25. This scheme aims to provide comfort to banks to extend additional funds of up to 20% of the outstanding credit to MSMEs, even to units whose accounts may have become special mention accounts due to genuine business failures or delayed payments. The Financial Express
- Revamped Interest Subvention Scheme: A new interest subvention scheme is expected to be introduced, offering a 3% interest subsidy to MSME exporters. This initiative aims to help exporters remain competitive amid global tariff challenges, especially with the US. The Financial Express
- Policy Blueprint: The government is preparing a comprehensive reform package that will focus on ease of credit access, simplified compliance, cluster-based development, and integration of MSMEs into global value chains.https://bharatspeaks.com/indias-msme-revolution-government-drafts-historic-reform-blueprint-to-resh…
- Why It Matters:
These initiatives represent a shift from isolated schemes to a holistic policy framework, connecting finance, digitalization, and export competitiveness into a single transformative mission.