India has unveiled a new set of initiatives aimed at boosting micro, small, and medium enterprises (MSMEs) while accelerating the modernisation of rural industries. The measures were launched by Nirmala Sitharaman during the 37th Foundation Day celebrations of Small Industries Development Bank of India in Mumbai.
The latest initiatives are designed to improve credit access for small businesses, especially in rural and underserved regions. A key highlight is the SIDBI-RRB Co-Lending Platform, which aims to strengthen financing support by connecting SIDBI with Regional Rural Banks. The government believes this digital lending model will improve last-mile credit delivery for entrepreneurs and small enterprises.
To support technology adoption and industrial modernisation, the government also introduced SIDBI MachFin Mart. The digital platform is expected to help MSMEs access machinery through a structured marketplace that promotes price transparency and standardisation. Officials say the initiative will encourage businesses to upgrade operations and improve productivity.
Another major initiative is the MoRE programme, short for Modernisation of Rural Enterprises. The programme aims to support around 10,000 rural micro and artisanal units over the next three years through cluster-based development and transformation support. The initiative is expected to strengthen rural manufacturing ecosystems and generate local employment opportunities.
The government has also announced additional equity support of ₹5,000 crore for SIDBI to strengthen MSME financing capacity. According to official statements, the enhanced support is expected to help the institution add millions of new MSME beneficiaries by 2028.
India’s MSME sector remains a major contributor to manufacturing, exports, employment, and GDP growth. The latest funding and modernisation initiatives reflect the government’s continued focus on strengthening small businesses and rural industries as part of the country’s long-term economic growth strategy.
