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B B Swain, Secretary to the Union Ministry for Micro, Small and Medium Enterprises (MSMEs) has said that the government has acknowledged MSMEs' contribution to the country's economic growth, and the Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances. He said availability, accessibility and affordability of credit/funds are the main challenges of the sector.

Swain said the launch of a revamped credit guarantee scheme worth Rs 9,000 crore for MSMEs would enable collateral-free credit of Rs 2 lakh crore loans to small businesses. Moreover, he said by reducing the guarantee fee to 1.3 per cent, the government has eased collateral credit/funding for the MSMEs. This will go a long way to support the sector. These measures can be game changers.

He further said the MSMEs catering to the foundry industry stand benefitted from several measures the government has taken up. He said over 15,000 MSMEs (out of 5 crore from all sectors) from the foundry industry play the role of a powerful catalyst in making India one of the largest producers and exporters of casting products in the world.