MSMEs employ 23.24 crore people but struggle with regulatory compliance, which hinders formalisation, productivity, innovation, and employment growth.
MSMEs drive economic growth, employment, and innovation but often remain small, limiting access to capital, skilled labor, and technology.
Many MSMEs stay small to avoid regulations, resulting in a parallel informal economy, low productivity, and missed opportunities for labor welfare and job creation.
The government has worked to improve MSME access to finance, technology, and markets, aiming to address structural challenges.
In 2023, the Udyam Assist Platform (UAP) formalized 2.39 crore informal micro enterprises.
the government in collaboration with SIDBI, introduced the UAP
Goa and Tamil Nadu used the TReDS platform (Trade Receivables E-Discounting System) to enhance MSME liquidity and payments, especially during COVID-19 disruptions.
Self-Reliant India (SRI) Fund: A ₹50,000 crore fund to provide equity funding to scalable MSMEs, with ₹10,000 crore from the government and ₹40,000 crore from private equity.
The Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) aims to support MSMEs through Common Facility Centres (CFCs) that address technology, skill, and quality improvement needs.
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