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.

Summery of the News

Key Points	Details
Why in News	Nirmala Sitharaman launched the National MSME Cluster Outreach Programme and inaugurated six new SIDBI branches in Karnataka to enhance MSME financial access. The programme connected 150 MSME clusters virtually and set new MSME credit targets. Four Nari Shakti Branches were also inaugurated.
SIDBI New Branches Locations	Tumakuru, Raichur, Shivamogga, Kalaburagi, Mangaluru, Vijayapura (all in Karnataka)
Additional MSME Credit Target	Rs. 1.54 lakh crore for the current fiscal year, with goals of 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
Peenya Industries Association Collaboration	MoU signed with SIDBI for capacity building, credit, and knowledge-sharing for MSMEs
Pradhan Mantri Mudra Yojna (PMMY) Update	Loan limit increased from Rs. 10 lakh to Rs. 20 lakh as per Union Budget 2024-25
Nari Shakti Branch Locations	Bengaluru, Chennai, Jaipur, Visakhapatnam
Canara Bank Learning Centre Location	Bagaluru, Bengaluru
Role of MSMEs in India	Innovation, job creation, self-reliance contribution (Mentioned in FM’s address)
Union Minister for Finance	Nirmala Sitharaman
Relevant Organizations	DFS, SIDBI, NABARD, Union Bank of India, Canara Bank
Current Chief Minister of Karnataka	Siddaramaiah (as of the latest update)
Current Capital of Karnataka	Bengaluru