FM launches initiatives to strengthen MSMEs

Union Finance Minister Nirmala Sitharaman, speaking at an event, launched a set of strategic portals and initiatives aimed at strengthening the MSME ecosystem, enhancing last-mile credit delivery and accelerating the modernization of rural industries. Highlighting the contribution of MSMEs to the Indian economy, Sitharaman said that MSMEs contribute nearly 35 per cent of manufacturing output, 48 per cent of exports and around 31 per cent of India's GDP. She noted that the sector comprises over 7.47 crore entrepreneurs and provides employment to more than 32 crore people across the country. The Union Finance Minister further stated that the Union Cabinet, in January 2026, approved an additional equity support of ₹5,000 crore to SIDBI, which will strengthen the institution's balance sheet and enable it to add 25 lakh new MSME beneficiaries by the year 2028.

The initiatives launched include the SIDBI MachFin Mart, a digital platform to help MSMEs access machinery through a structured marketplace supporting price discovery, standardisation and technology adoption. The finance minister also launched the RRB Co-Lending Portal to operationalize partnerships between SIDBI and Regional Rural Banks for improving credit flow in rural and underserved regions. Another major initiative launched was MoRE, or Modernisation of Rural Enterprises, a programme aimed at providing transformational support to 10 thousand rural micro and artisanal units over the next three years through cluster-based interventions.

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