Rashtriya Udyamita Vikas Pariyojana in India

Rashtriya Udyamita Vikas Pariyojana is a government program launched by India's Ministry of Micro, Small, & Medium Enterprises to promote micro, small, and medium enterprises across the country. Launched on April 7th, 2021, this scheme aims to support these businesses with various benefits such as capital accessibility and market linkages, enabling them to scale up their operations. It caters specifically to two groups—micro and small businesses under the category of 'Khadya Sarthi Yojna', and micro, small, and medium enterprises under the umbrella term 'Udyami Samridhi Yojna'. This initiative is part of a broader effort called "Mission Karmayogi", which focuses on enhancing the overall capabilities of officers and employees working at central ministries, departments, and organizations.

The primary goal of Rashtriya Udyamita Vikas Pariyojana is to make it easier for MSMEs to secure credit from banks by providing collateral-free loans through its Credit Guarantee Fund Trust for Micro and Small Enterprises, known as CGTMSE. Additionally, the scheme offers insurance facilities for business owners so they can start their ventures without having to worry about unexpected losses due to natural calamities like floods, fire, earthquakes etc., thereby reducing risks associated with setting up new units. Moreover, there has been a major policy change whereby income tax returns are now mandatory for availing loan sanctions under this scheme; only when entrepreneurs submit their IT Returns will they get access to bank finance.

In terms of funding allocations, during Budget 2022-23, Finance Minister Nirmala Sitharaman announced plans to allocate Rs 3,000 crore toward the Pradhan Mantri Awas Yojana- Urban for the construction of affordable housing complexes for beneficiaries who do not have any land assets. Furthermore, she proposed increasing the allocation for the Rashtriya Udyamita Vikas Yojana by ₹2500 Crores to help strengthen the economy further. These measures demonstrate the commitment of the Indian Government towards promoting growth amongst MSMEs, especially those in urban areas.

Overall, Rashtriya Udyamita Vikas Pariyojana represents a significant step forward in providing much needed financial assistance and risk mitigation tools to aid the development and expansion of hundreds of thousands of small and medium businesses nationwide, thereby contributing significantly to economic growth.