Boosting Make in India: Goyal Unveils Enhanced Credit Guarantee Scheme to Power India’s Manufacturing and Self-Reliance Drive

Union Minister Piyush Goyal has praised the government's revised Credit Guarantee Scheme for Startups (CGSS) as a game-changer to encourage India's manufacturing sector and accelerate the nation's self-reliance mission. Introduced on May 9, the upgraded scheme doubles the ceiling guarantee cover for every borrower to ₹20 crore from ₹10 crore and enhances the guarantee coverage to 85% for up to ₹10 crore loans and 75% for amounts higher than that. The yearly guarantee fee for 27 "Champion Sectors" under the Make in India scheme is also cut to 1%, lowering startups' borrowing cost in priority manufacturing and service sectors.

 

Goyal emphasized that these reforms will catalyze innovation, increase R&D, and strengthen early-stage funding, facilitating collateral-free loans to become more accessible and attractive for lenders. Industry captains have welcomed the initiative, citing its potential to transform India's startup ecosystem and propel the drive toward Aatmanirbharta.

 

Source: Tribune India, Business Standard, TICE