Empowering 5.7 Crore MSMEs
To drive economic growth and job creation, MSMEs play a crucial role in both manufacturing and service sectors. With their quality products and significant contribution to exports, these enterprises are pivotal to India's economy.
To help MSMEs achieve higher efficiencies of scale, technological upgradation, and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. This will provide them with the confidence to grow and generate employment for our youth.
To improve access to credit, the credit guarantee cover will be significantly enhanced:
We will introduce customized Credit Cards with a ₹5 lakh limit for micro enterprises registered on the Udyam portal. In the first year, 10 lakh such cards will be issued.
The Alternate Investment Funds (AIFs) for startups have received commitments of more than ₹91,000 crore. These are supported by the Fund of Funds set up with a Government contribution of ₹10,000 crore. Now, a new Fund of Funds, with expanded scope and a fresh contribution of another ₹10,000 crore will be set up.
A new scheme will be launched for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. This will provide term loans up to ₹2 crore during the next 5 years. The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organized.
To enhance the productivity, quality, and competitiveness of India’s footwear and leather sector, a focus product scheme will be implemented. The scheme will support design capacity, component manufacturing, and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products. The scheme is expected to facilitate employment for 22 lakh persons, generate turnover of ₹4 lakh crore, and exports of over ₹1.1 lakh crore.
Building on the National Action Plan for Toys, we will implement a scheme to make India a global hub for toys. The scheme will focus on development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the 'Made in India' brand.
In line with our commitment towards ‘Purvodaya’, we will establish a National Institute of Food Technology, Entrepreneurship and Management in Bihar. The institute will provide a strong fillip to food processing activities in the entire Eastern region. This will result in (1) enhanced income for the farmers through value addition to their produce, and (2) skilling, entrepreneurship, and employment opportunities for the youth.
Our Government will set up a National Manufacturing Mission covering small, medium, and large industries for furthering “Make in India” by providing policy support, execution roadmaps, governance, and monitoring frameworks for central ministries and states. Details are in Annexure E.
Given our commitment to climate-friendly development, the Mission will also support Clean Tech manufacturing. This will aim to improve domestic value addition and build our ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, very high voltage transmission equipment, and grid-scale batteries.