Mumbai, March 6
The Small Industries Development Bank of India (SIDBI) and The Federal Bank Limited (FBL) on Thursday announced that they have signed a Memorandum of Understanding (MoU) to provide financial support to micro, small, and medium enterprises (MSMEs).
This partnership aims to strengthen the MSME ecosystem by offering various financial services, including project finance, machinery and equipment finance, working capital support, and loans against property.
Under this agreement, both institutions will also explore joint financing options to extend credit facilities to MSMEs.
The collaboration is expected to help businesses access funds more efficiently, enabling their growth and development.
Prime Minister Narendra Modi on March 4 reaffirmed the government's commitment to strengthening the MSME sector, calling it the backbone of India's manufacturing and industrial growth.
Addressing post-Budget webinars via video conferencing, PM Modi highlighted key initiatives aimed at supporting MSMEs and enhancing India's manufacturing and export capabilities.
"In 2020, the government took a major step by revising the definition of MSMEs after 14 years, eliminating the fear among businesses that they would lose government benefits if they expanded," he said.
The Prime Minister further stated that the government has gone beyond expert expectations in several sectors and made significant decisions regarding manufacturing and exports in the latest Budget.
A senior Commerce Ministry official said earlier that the government is also planning new schemes to offer easy credit to MSME exporters and provide support in tackling non-tariff measures imposed by other countries, which have become a hurdle for India's merchandise exports.
At a post-Budget webinar, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said that the Commerce, MSME, and Finance Ministries are working together on these schemes.
He added that the government is designing schemes to provide MSME exporters with easy credit and promote alternative financing options by strengthening factoring services.
- IANS