Only 18% MSME applicants get subsidies every year: MSME Minister

Bengaluru: Barely 90,000 out of the five lakh medium, small and micro enterprises (MSMEs) that apply for subsidies every year are catered to by the Centre, the Union Minister of State for MSMEs, Shobha Karandlaje said at an event in Bengaluru on Friday. 

“We have submitted a proposal to the Finance Minister to enhance this subsidy component. Moreover, there has been an increased allocation for MSMEs in the Union budget,” the minister informed.

The budgetary allocation for the MSME sector in 2024- 25 was around Rs 22,000 crore by the finance ministry, proposing a package covering financing, regulatory changes and technology support for MSMEs. 

Noting that large public sector undertakings (PSUs) are importing many raw materials from other countries, Shobha Karandlaje said her ministry will submit a memorandum to Prime Minister Narendra Modi to direct them to prioritise purchasing raw materials from MSMEs.