Credit and finance for MSMEs: The union budget 2023-24 had proposed allocation of Rs 22,138 crore to the MSME ministry, 3.3 per cent higher than Rs 21,422 crore allocated in the FY23 budget and 42 per cent more than the revised estimate (RE) of Rs 15,628 crore in FY23. The FY24 allocation to the ministry included revenue expenditure of Rs 21,542 crore and capital expenditure of Rs 594.5 crore. Here’s a quick look at the jump in the budget estimate (BE) for various MSME-related schemes for FY24 vis-a-vis RE of those schemes in FY23.
MSME Champions Scheme – Aims to modernize MSMEs’ manufacturing processes, reduce wastages, encourage innovativeness, improve business competitiveness and facilitate their national and global reach.
FY24 BE: Rs 52.72 crore
FY23 RE: Rs 51.81 crore
ASPIRE (Promotion of Innovation, Rural Industry and Entrepreneurship) — Provides training and incubation support to prospective entrepreneurs in the agro-rural sector through Livelihood Business Incubators (LBIs).
FY24 BE: Rs 22.23 crore
FY23 RE: Rs 4 crore
Prime Minister Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme that promotes entrepreneurship to generate employment through financial assistance to individuals.
FY24 BE: Rs 2,700 crore
FY23 RE: Rs 2,484.01 crore
Guarantee Emergency Credit Line (GECL) — Provides guaranteed loans to lenders which are extended in the form of additional working capital or term loan facility to eligible MSMEs, business enterprises and others including borrowers under Pradhan Mantri Mudra Yojana.
FY24 BE: Rs 14,100 crore
FY23 RE: Rs 10,500 crore
Also read: What MSMEs got out of Budget 2023? Here are 7 key announcements by FM Nirmala Sitharaman
Procurement and Marketing Support (P&MS) Scheme – Promotes new market access initiatives and enhances the marketability of products and services in the MSME sector.
FY24 BE: Rs 96.35 crore
FY23 RE: Rs 40 crore
Fund of Funds – Enables equity financing under the name Self-Reliant India Fund, operating through the mother-fund and daughter-fund structure wherein SRI fund, as a mother fund, invests up to 20 per cent of the overall corpus of daughter fund (mostly VC and PE funds) and the latter raises the balance 80 per cent of the capital from outside sources.
FY24 BE: Rs 575 crore
FY23 RE: Rs 439 crore
Establishment of New Technology Centres – To establish 20 new Technology Centres (TCs
FY24 BE: Rs 450 crore
FY23 RE: Rs 10 crore
Technology Centre Systems Programme (TCSP) — A World Bank-assisted programme to improve the competitiveness of MSMEs in manufacturing through access to improved technology, availability of skilled workers, and business & technical advisory services.
FY24 BE: Rs 350 crore
FY23 RE: Rs 124 crore
Raising and Accelerating MSME Performance (RAMP) — The scheme aims to strengthen institutions and governance at the centre and state and improve access of MSMEs to market and credit, technology upgradation and addressing issues of delayed payments and greening of MSMEs.
FY24 BE: Rs 1,170 crore
FY23 RE: Rs 455 crore
National Schedule Caste/Schedule Tribe Hub supports entrepreneurs of the scheduled caste and scheduled tribe communities in capacity building, market linkages, finance facilitation and tender participation.
FY24 BE: Rs 100 crore
FY23 RE: Rs 90 crore
Also read: Budget 2023-24 gives a boost to fund-starved sectors: MSME Secy
Scheme for Fund for Regeneration of Traditional Industries (SFURTI) — Aims to develop clusters of traditional industries and make traditional industries more competitive, market-driven, productive and profitable.
FY24 BE: Rs 280 crore
FY23 RE: Rs 1.95 crore
Coir Vikas Yojana – Focuses on the development of coir industries including undertaking scientific, technological and economic research & development activities. It provides for developing new products & designs and marketing of coir and coir products in India and abroad.
FY24 BE: Rs 92 crore
FY23 RE: Rs 87 crore
Khadi Vikas Yojana – Aims to promote khadi in the country through various components such as Modified Market Development Assistance (MMDA), Interest Subsidy Eligibility Certificate (ISEC), Workshed Scheme for Khadi Artisans, Marketing Promotion (Exhibitions), etc.
FY24 BE: Rs 498 crore
FY23 RE: Rs 306 crore
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