Annual Review of Micro, Small and Medium Enterprises Sector


As we fought with the uneven deadlier and scariest second wave of covid this year, it would be exciting to see how last year’s MSMEs Scheme has worked so far, so that a useful conclusion can be built of what worked for us and where govt. lacked and how much can be improved to bring better results in 2021.

However, sadly this sector was one of the worst-hit sectors by the first wave of covid pandemic that affected their access to markets, credit facility, and financial year. This pushed the Indian Government to announce a relief package of ₹20 lakh crore Atamnirbhar Bharat Abhiyaan to revive the economy and to boost the MSMEs sector.

The year 2020 is marked by several future visionary initiatives in the MSME sector. MSMEs Scheme launched by the government are :

1. Udyog Aadhaar Memorandum

In this, the Aadhaar card is a mandatory obligation for registration.  The benefit of registering in this scheme is the ease in availing credit, loans, and subsidies from govt. Registration can be done both ways online through ( and offline mode.

2.Fund of funds scheme for MSMEs

₹50000 crore equity infusion for MSMEs through FOF which faces a severe shortage of equity. FOF with a Corpus of ₹10000 crores will be set up. It will help to extend MSME size as well as capacity.

₹20000 crores Subordinate Debt For Stressed MSMEs who require equity support. MSMEs which are NPA or are stressed, govt will provide a support of ₹4000 crores to CGTMSE.

₹3 lakh crores Collateral-Free Automatic Loans for MSMEs.

3.Government Receivables in 45 days

Govt. has been continuously monitoring the settlement of dues to MSME vendors from Govt and Central PSUs. MSME is receivable from Govt and CPSEs to be released in 45 days.

4.Credit Linked Capital Subsidy For Technology Upgradation provides a 15% subsidy for additional investment up to ₹1 crore for Technology Upgradation. (

Actions taken:

1.The no. of registered MSMEs grew to 2.5 million in 2020 due to the launch of the Udyog Aadhaar policy.

2. Under Distressed Assets Fund, during the Nov 2020 guarantee to 121 borrowers amounting to ₹12.49 crore has been extended.

3. Champions portal on 1st June 2020, is an ICT-based technology system, Nodal officers have been appointed for a portal to resolve the queries on fast track mode. Up to 15th Dec 2020 more than 25,000 grievances have been received on the portal and more than 24,550 queries have been responded to and resolved.

4. During the period Jan 2020 to 30th Nov 2020, 60,211 micro-enterprises have been credited and assisted with the margin money subsidy of ₹1743.84 crores generating employment for about 4.81 lakh persons as per PMEGP i.e. Prime Minister’s Employment Generation Programme.

5. As per CLCSS-TUS during the period till Nov 2020 about 7,500 MSEs have been benefited by the way of releasing of ₹540 crores approx.

6. per CGTMSE during the period 30th Nov 2020, a total of 8,99,377 guarantees have been approved, these guarantees involve an amount of ₹40,178.35 crores.


The Govt. of India has envisioned double the Indian economy to US$ 5 trillion in 5 years. Further, the government aims to enhance MSMEs’ shares in exports and contribution to GDP.

To achieve these targets, the govt. should invest in providing more back-end servers to improve the performance of the MSME sector.

In union budget 2021, the govt. announced worth ₹10000 crores for Guarantee Emergency Credit Line(GECL) facility to eligible MSME borrowers,  giving a major boost to the sector.

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