UPSC-Relevant News Items

1. Opening New Growth Avenues for MSMEs via Digital Finance and Policy Support- Sunday Special

Page: 1

Summary:

• • MSMEs are crucial for the $5T economy target, driving GDP and employment, contributing over 45% to manufacturing output.
• • Government initiatives leverage digital finance (PSB digitization, TReDS—helps resolve working capital via trade receivables discounting) and policy support (CGTMSE, RAMP, PMEGP).
• • Key schemes (Udyam Registration, Champions Portal) streamline classification, credit, and grievance redressal for focused developmental support.

Additional Facts:

• • The Ministry of MSME implements the 'Samadhaan Portal' (specifically for the quick resolution of disputes related to delayed payments to MSEs) and the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006' to regulate classification, provide policy support, and address delayed payments.
• • The RBI has introduced robust frameworks for digital lending (ensuring transparency and consumer protection) and established the SME Fund to facilitate greater non-banking financial access for smaller firms.
• • Additionally, the government has launched the 'Fund of Funds' (FoF), managed by SIDBI, scheme to infuse equity and growth capital into MSMEs.
• • The 'ZED' (Zero Defect Zero Effect) scheme promotes quality manufacturing standards and global competitiveness by offering financial incentives for certification.

Linkage with UPSC course:

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