In recently held FICCI CMSME National Conference 2024', Dr Rajneesh, Additional Secretary and Development Commissioner (MSME), Ministry of MSME, Govt of India said that government has bridged a large gap in formalization of MSMEs in the last few years. He added that many MSMEs need to register with the government, and it was estimated that there were around 6.5-7 crore MSMEs in India economy and only 1.63 crore MSMEs were registered till last year with the government. The government started concerted drive jointly with state governments and industry associations. As on date, the total number of registered MSMEs with the ministry in more than 1 year has increased from 1.65 crore to 5 crore bridging the large formalization gap, he noted.
It was further highlighted that the government has bridged the credit gap for MSMEs in last few years. He stated that it is not just about the quantum of credit or funds which are available, but it is also a question of the cost of credit. The Ministry works on these two lines and to bridge the credit gap, the 'Credit Guarantee Trust for Micro and Small Enterprises' (CGTMSE) is a body which is providing credit guarantees for MSMEs and helps in collateral free loans for MSMEs.
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