Need to develop new modes of credit delivery for low-cost, timely credit to MSMEs: PM Modi

New Delhi: Prime Minister Narendra Modi on Tuesday said there is a need to develop new modes of credit delivery to ensure access of timely and low-cost funds to over six crore MSMEs across the country.

Addressing a post-Budget webinar for Micro, Small and Medium Enterprises (MSMEs), the Prime Minister said five lakh first-time women, SC & ST entrepreneurs will be provided loans of up to Rs 2 crore.

"We need to develop new modes for credit delivery, ensuring MSMEs have access to low-cost and timely credit. 5 lakh first-time women, SC, and ST entrepreneurs will be provided loans of up to Rs 2 crore," said the Prime Minister.

He stressed that the MSMEs need not only credit, but also guidance and suggested that industries should establish mentorship programs to support them.

Today the world is passing through an uncertain political environment and the entire world is looking at India as a "growth centre", said the Prime Minister.

He said that the Production-Linked Incentive (PLI) scheme introduced for 14 sectors led to investment of over Rs 1.5 lakh crore and total production worth over Rs 13 lakh crore.

"We have done away with over 40,000 compliances at the centre and state level, leading to improved ease of doing business," said PM Modi, highlighting the need to open new avenues of manufacturing and exports for the country.

"Today every country wants to strengthen its economic partnership with India. Our manufacturing sector must take advantage of this opportunity," said the Prime Minister.