Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, today launched the National MSME Cluster Outreach Programme, aimed at providing better access to financial services and promoting the growth of Micro, Small, and Medium Enterprises (MSMEs) across India. The programme, a collaboration between the Department of Financial Services (DFS), Ministry of Finance, and the Small Industries Development Bank of India (SIDBI), was launched in Bengaluru with virtual connections to over 150 MSME clusters across the country.
the gathering, Smt. Sitharaman emphasized the pivotal role MSMEs play in driving India’s economic growth, particularly in innovation, job creation, and enhancing the country’s self-reliance. “MSMEs are the backbone of our economy, and their empowerment is crucial for a sustainable and inclusive growth model,” she said, highlighting how the government and financial institutions must further support these enterprises for long-term sustainability.
In a major boost to the MSME sector, Smt. Sitharaman also inaugurated six new SIDBI branches in Karnataka—located in Tumakuru, Raichur, Shivamogga, Kalaburagi, Mangaluru, and Vijayapura. This move will expand SIDBI’s reach, providing more financial assistance to MSMEs in these regions. Additionally, the Finance Minister virtually inaugurated four Nari Shakti Branches of Union Bank of India in Bengaluru, Chennai, Jaipur, and Visakhapatnam, which aim to empower women entrepreneurs. She also inaugurated a Learning Centre of Canara Bank in Bagaluru, Bengaluru, focused on enhancing the skills of MSME entrepreneurs.
During the event, Smt. Sitharaman set a bold target for all Scheduled Commercial Banks and Non-Banking Financial Companies (NBFCs) to provide an additional Rs. 1.54 lakh crore in MSME credit during the financial year 2024-25. This is part of a broader goal to achieve a total MSME credit growth of Rs. 5.75 lakh crore in FY 2024-25, Rs. 6.21 lakh crore in FY 2025-26, and Rs. 7 lakh crore in FY 2026-27.
She urged financial institutions to go the extra mile to extend credit to small enterprises, especially those in rural areas, ensuring they have access to much-needed capital for growth and innovation.
The event also witnessed significant efforts to support women entrepreneurs. The Nari Shakti Branches of Union Bank of India are specifically designed to cater to women-led businesses and provide them with targeted financial services. These branches will be instrumental in bridging the gender gap in India’s entrepreneurial ecosystem.
To strengthen collaboration with MSMEs, SIDBI signed a Memorandum of Understanding (MoU) with the Peenya Industries Association. The MoU aims to support MSMEs through capacity building, credit facilities, and knowledge-sharing initiatives, further fostering the growth of small enterprises in the region.
As part of the event, Smt. Sitharaman distributed sanction letters to several MSME customers of SIDBI, amounting to a total of Rs. 25.75 crore. Additionally, two MSME customers of the Nari Shakti Branch of Union Bank of India received sanction letters worth Rs. 11 crore. The funds are expected to support enterprises across various sectors, from traditional industries to advanced fields like aerospace and quantum technology.
The Finance Minister also handed over sanction letters to five borrowers under the Pradhan Mantri Mudra Yojana (PMMY) for loans under the newly launched Tarun Plus category. This move follows the recent increase in loan limits under PMMY, from Rs. 10 lakh to Rs. 20 lakh, as announced in the Union Budget 2024-25.
