Boosting MSME Manufacturing: New Credit Guarantee Scheme Unveiled

The Indian government launched a Mutual Credit Guarantee Scheme for MSMEs to improve financing access for small businesses. This scheme, providing up to 60% guarantee for loans, aims to bolster manufacturing and exports by enabling enterprises to invest in modern equipment, facilitating global market competition.

The Indian government has introduced a new Mutual Credit Guarantee Scheme (MCGS-MSME) aimed at boosting the manufacturing and export capabilities of the MSME sector. The scheme covers loans up to Rs 100 crore, providing a 60 per cent guarantee through the National Credit Guarantee Trustee Company Ltd.

This initiative is expected to tackle the long-standing issue of inadequate financing faced by MSMEs, particularly for capital investments. Through this policy, eligible enterprises can access credit for purchasing modern equipment and machinery, vital for scaling operations and enhancing competitiveness in global markets.

Experts believe the scheme will significantly impact India's manufacturing output, aligning with the 'Make in India, Make for the World' vision. It aims to increase the sector's contribution to GDP and facilitate the integration of MSMEs into global value chains, bolstering India's economic growth.

(With inputs from agencies.)