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MSME Fund Surge: ₹10,000 Crore Boost for Small Businesses
20 Jan
Summary
- MSME Champions Scheme may see funding jump to ₹10,000 crore.
- Focus on cleaner manufacturing, exports, and global competitiveness.
- Scheme components include ZED certification, lean manufacturing, and IP creation.
The Indian government is preparing a substantial financial boost for its MSME Champions Scheme, with plans to increase the outlay to approximately ₹10,000 crore over the next five years. This significant enhancement, a steep rise from the previous ₹1,125 crore allocation, aims to foster cleaner manufacturing practices, expand export capabilities, and elevate the global competitiveness of micro, small, and medium enterprises.
The proposed funding increase is currently undergoing review by the expenditure finance committee and is expected to receive Union cabinet approval within three to five months. The initiative responds to industry calls for greater financial support to strengthen efficient production methods and better compete in international markets. Key components of the scheme include the MSME Sustainable (ZED) certification, the MSME Competitive (Lean) component for efficiency, and support for intellectual property rights creation.
While the increased funding is seen as positive for micro and small enterprises, experts suggest it may have less impact on medium-sized businesses already adhering to high standards. Challenges remain in fostering innovation and securing intellectual property, particularly for micro-enterprises. Additionally, many Indian MSMEs lack the necessary certifications and documentation to meet stringent international export standards, such as the EU's carbon border adjustment mechanism.
