Sitharaman Launches MSME Outreach, Expands SIDBI in Karnataka

Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, launched the National MSME Cluster Outreach Programme in Bengaluru, jointly organized by the Department of Financial Services (DFS), Ministry of Finance, and Small Industries Development Bank of India (SIDBI). Key officials, including Shri Jitan Ram Manjhi, Union Minister for MSMEs (virtually from Gaya, Bihar), and other dignitaries were present. The programme linked around 150 MSME clusters virtually, emphasizing access to financial services and boosting MSME growth nationwide.

Expanding Financial Infrastructure

The Finance Minister inaugurated six new SIDBI branches in Karnataka at Tumakuru, Raichur, Shivamogga, Kalaburagi, Mangaluru, and Vijayapura. These branches aim to increase SIDBI’s financial assistance to MSMEs. Additionally, four Nari Shakti Branches of Union Bank of India in Bengaluru, Chennai, Jaipur, and Visakhapatnam were launched to empower women entrepreneurs. A new Canara Bank Learning Centre at Bagaluru, Bengaluru, was also inaugurated.

Focus on MSME Growth and Credit Enhancement

Sitharaman set ambitious credit targets for MSMEs, directing Scheduled Commercial Banks and NBFCs to offer an additional Rs. 1.54 lakh crore in the current fiscal. The total MSME credit growth aims to reach Rs. 5.75 lakh crore, Rs. 6.21 lakh crore, and Rs. 7 lakh crore for FY 2024-25, 2025-26, and 2026-27, respectively. She emphasized the need for banks to extend greater credit support to MSMEs and recognized their vital role in economic innovation, job creation, and India’s self-reliance.

Empowering MSMEs through Collaborations and Sanctions

SIDBI signed an MoU with Peenya Industries Association, focusing on capacity building and credit facilitation for MSMEs. Sitharaman distributed sanction letters totaling Rs. 25.75 crore to 11 MSME customers of SIDBI and Rs. 11 crore to two customers of Union Bank’s Nari Shakti Branch. She also awarded five Canara Bank borrowers under the Pradhan Mantri Mudra Yojna (PMMY) Tarun Plus category, reflecting the recently raised PMMY loan limit from Rs. 10 lakh to Rs. 20 lakh, as announced in the Union Budget 2024-25.

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