Government has expanded MSME formalisation and credit access initiatives with over 7.9 crore enterprises registered through Udyam portal. Key measures include enhanced credit guarantee schemes, digital lending platforms, and technology adoption support. New initiatives focus on reducing compliance burden, improving market linkages, and promoting manufacturing competitiveness. The push aims to strengthen India's MSME sector which contributes 30% to GDP and employs over 11 crore people, addressing long-standing challenges of credit access and formal registration barriers.

India's MSME sector, contributing 30% to GDP and 45% to exports, has historically faced twin challenges of credit access and informality. The government's expanded push addresses these through the Udyam registration portal, which has simplified the registration process and linked it to various benefits. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has been strengthened to provide collateral-free loans up to ₹2 crore. Digital lending platforms and fintech partnerships are reducing documentation requirements and processing time. The Emergency Credit Line Guarantee Scheme (ECLGS), launched during COVID-19, has been extended multiple times to support distressed MSMEs. Technology adoption is being promoted through schemes like Technology Upgradation Fund Scheme (TUFS) and Digital MSME scheme. Market linkage initiatives include Government e-Marketplace (GeM) portal reservations and cluster development programs. The formalisation drive is crucial as formal MSMEs can access institutional credit, government schemes, and global markets more effectively. This comprehensive approach aims to transform MSMEs from survival-based enterprises to growth-oriented businesses, critical for India's manufacturing competitiveness and employment generation goals.