In the Union Budget 2023 Finance Minister Nirmala Sitharaman proposed special focus on the Micro, Small and Medium Enterprises (MSMEs) sector. The finance minister announced a revamped credit guarantee scheme aimed at providing additional collateral-free credit to MSMEs.
The revamped scheme will take effect from April 1, 2023, and will be funded through the infusion of Rs 9,000 crore in the corpus. This will enable MSMEs to access an additional Rs 2 lakh crore in collateral-free credit.
This move is expected to provide a major boost to the MSME sector, which is considered a key driver of economic growth in India. The availability of additional collateral-free credit is expected to help MSMEs overcome the challenges posed by the pandemic and enable them to continue to grow and create jobs.
The finance minister’s announcement could prove to be a positive step towards ensuring the health and growth of the MSME sector in India.