Union Finance Minister Nirmala Sitharaman on Saturday inaugurated the National MSME Cluster Outreach Programme, an initiative designed to enhance access to financial services for Micro, Small, and Medium Enterprises (MSMEs) across India. The program was organized jointly by the Department of Financial Services (DFS), the Ministry of Finance, and the Small Industries Development Bank of India (SIDBI).
Virtual Launch Connects 150 MSME Clusters Nationwide
The launch event witnessed the virtual connection of over 150 MSME clusters, with senior bank officials present in each cluster to offer guidance. This initiative aims to bolster the growth and development of MSMEs by improving their access to critical financial services and creating an ecosystem that supports innovation and entrepreneurship.
Inauguration of New SIDBI and Union Bank Branches to Extend Financial Reach
During the event, Sitharaman virtually inaugurated six new SIDBI branches in Karnataka, including locations in Tumakuru, Raichur, Shivamogga, Kalaburagi, Mangaluru, and Vijayapura. These new branches are poised to expand SIDBI’s support to MSMEs in these regions. Additionally, four Nari Shakti branches of Union Bank of India were launched in Bengaluru, Chennai, Jaipur, and Vishakhapatnam to specifically empower women entrepreneurs.
Sitharaman also inaugurated a Learning Centre of Canara Bank in Bagaluru, Bengaluru, further strengthening the financial support infrastructure for MSMEs.
MSMEs: Key to India’s Economic Growth and Self-Reliance
In her speech, Sitharaman highlighted the crucial role MSMEs play in India’s economic development. She stressed their significance in driving innovation, creating jobs, and contributing to the nation’s self-reliance, emphasizing the government’s commitment to supporting this vital sector.
Setting Targets for MSME Credit Growth
The Union Finance Minister set an ambitious target for the MSME credit sector, urging all Scheduled Commercial Banks and Non-Banking Financial Companies (NBFCs) to provide an additional Rs. 1.54 lakh crore in MSME credit during the 2024-25 financial year. The broader target is for these institutions to drive credit growth of Rs. 5.75 lakh crore in FY 2024-25, Rs. 6.21 lakh crore in FY 2025-26, and Rs. 7 lakh crore in FY 2026-27.
Partnerships to Strengthen MSMEs
In a significant step towards supporting MSMEs, SIDBI signed a Memorandum of Understanding (MoU) with the Peenya Industries Association. The collaboration aims to provide MSMEs with access to enhanced capacity-building opportunities, credit facilities, and knowledge-sharing resources, contributing to the sector’s sustainability and growth.
Distribution of Sanction Letters to MSME Beneficiaries
As part of the event, Sitharaman distributed sanction letters to 11 MSME clients of SIDBI, totaling Rs. 25.75 crore. The loans, which span a range of industries, will support sectors ranging from traditional industries to cutting-edge fields such as aerospace and quantum technology. Additionally, two MSME customers from Union Bank’s Nari Shakti branch received Rs. 11 crore in sanctions.
The Union Finance Minister also handed over sanction letters to five borrowers from Canara Bank under the newly launched “Tarun Plus” category of the Pradhan Mantri Mudra Yojana (PMMY). The initiative was recently enhanced with an increased loan limit from Rs. 10 lakh to Rs. 20 lakh as announced in the Union Budget 2024-25.
A Step Toward MSME Empowerment
The National MSME Cluster Outreach Programme, alongside the new financial support initiatives and the increase in loan limits, represents a transformative effort by the Indian government to empower MSMEs, boost economic growth, and strengthen the entrepreneurial spirit in the country.