Revised MSME Classification Boosts Competitiveness and Access to Capital

The Ministry of Micro, Small, and Medium Enterprises (MSME) has updated its classification criteria to facilitate scalability, technological advancements, and improved access to capital for MSMEs. This initiative aims to enhance global competitiveness and prevent exclusion or monopolization by larger enterprises. In addition, the Government has increased credit guarantee coverage for Micro and Small Enterprises (MSEs) and simplified loan processes for improving access to credit. Also introduced is a credit card scheme for Udyam-registered micro enterprises to ensure quicker access to working capital and stimulate digital transactions. Moreover, the Fund of Funds for Startups, administered by the Small Industries Development Bank of India (SIDBI), continues to support venture capital investments in startups.

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