The fortunes of MSME will change! Government gave guarantee of Rs 92,000 crore in February-March, expanding business will now become easier

MSME Credit Guarantee: The government has approved more than 5.27 lakh guarantees worth more than Rs 92,000 crore to boost the MSME sector during February-March this year. According to the Ministry of Micro, Small and Medium Enterprises, this step has been taken to provide strong support to the sector amid global challenges arising from the West Asia conflict.

The ministry said in an official statement that during February-March 2026, more than 20 lakh MSMEs made new registrations on the Udyam portal, taking the total number of registered enterprises in the country to more than 8 crore. This reflects the ever-increasing entrepreneurial activities in the country.

Data of total loans given to MSMEs

The total loan given to the MSME sector has exceeded Rs 36.7 lakh crore, registering a growth of 23.5 percent on a quarterly basis. This shows that despite global uncertainties, credit flows to the sector have improved. In a major step to increase easy access to finance, the government has increased the limit of unsecured loans for micro and small enterprises from Rs 10 lakh to Rs 20 lakh. This change has come into effect from April 1, which will provide huge benefits to small businessmen and new entrepreneurs.

A sharp increase has also been seen on the Trade Receivables Discounting System (T-REDS) platform to enhance liquidity. Here, invoice discounting has increased from Rs 4,300 crore in 2022 to more than Rs 7 lakh crore now. In February-March alone, transactions worth Rs 85,000 crore took place, which shows the increasing use of digital financing.

Steps to strengthen MSME sector

The government said it is continuously taking policy steps to strengthen the MSME sector, especially at a time when challenges are increasing globally. Additionally, the government has decided to increase the commercial LPG limit for industrial units to 70 per cent of the pre-March 2026 level. Many sectors like pharma, food, polymer, agriculture, packaging, paint, steel, metal, ceramic and glass will benefit from this.

Instructions to make coal available to collieries

Coal Ministry Coal India And Singareni Collieries have been instructed to provide additional coal to the states, so that supply to small and medium consumers can be ensured. States have also been advised to speed up the process of providing new PNG connections to domestic and commercial consumers.

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The ministry said it will continue to work closely with all stakeholders to promote the strength, competitiveness and growth of the MSME sector.