FM announces `10,000 cr fund, other measures to create 'Champion' MSMEs

New Delhi: Finance Minister Nirmala Sitharaman on Sunday proposed a three-pronged strategy, including a Rs 10,000 dedicated fund, to help MSMEs grow as 'Champions'.

In her Budget Speech, the minister said the Modi government has undertaken comprehensive economic reforms towards creating employment, boosting productivity and accelerating growth.

The "Reform Express" is well on its way and will maintain its momentum to help fulfil "our kartavya", she said while presenting the first Budget prepared in the newly constructed Kartavya Bhawan. Earlier, the Budget used to be prepared in the North Block.

"We are inspired by 3 kartavya," Sitharaman said, adding that the three kartavyas are: accelerate and sustain economic growth, fulfil aspirations and build capacity, and Sabka Sath, Sabka Vikas.

Under the first kartavya to accelerate and sustain economic growth, she proposed interventions in six areas, including creating 'Champion MSMEs'.

Recognising MSMEs as a vital engine of growth, Sitharaman outlined a three-pronged approach -- Equity Support, Liquidity Support and Professional Support -- to help MSME grow as ‘Champions’.

"I propose to introduce a dedicated Rs 10,000 crore SME Growth Fund, to create future Champions, incentivising enterprises based on select criteria," she said.

She also proposed to top up the Self-Reliant India Fund set up in 2021, with Rs 2,000 crore to continue support to micro enterprises and maintain their access to risk capital.

To provide MSMEs liquidity support, she announced plans to leverage full potential of TReDS.

With TReDS, more than Rs 7 lakh crore has been made available to MSMEs.