The government has approved more than 5.27 lakh guarantees worth Rs 92,000 crore for MSMES during February–March this year, demonstrating strong institutional support for the sector amid the global challenges triggered by the West Asia conflict, according to the Ministry of Micro, Small and Medium Enterprises on Wednesday.

Over 20 lakh MSMEs were newly registered on the ministry’s Udyam portal during February–March 2026, taking the total number of registered enterprises to over 8 crore, reflecting sustained entrepreneurial activity across the country, a ministry statement said.

The outstanding lending to MSMEs has exceeded Rs 36.7 lakh crore, registering a quarterly growth of 23.5 per cent, indicating improved credit flow despite global uncertainties, the statement said.

In a major step to enhance access to finance, the collateral-free lending limit for micro and small enterprises has been doubled from Rs 10 lakh to Rs 20 lakh, effective April 1, benefiting small entrepreneurs and first-time borrowers.

On liquidity measures, the Trade Receivables Discounting System (TReDS) platform has recorded significant growth, with invoice discounting increasing from Rs 4,300 crore in 2022 to over Rs 7 lakh crore currently, including Rs 85,000 crore in February–March alone, underscoring the growing adoption of digital financing solutions, the statement said.

The government remains committed to ensuring adequate support to MSMEs through coordinated policy measures, particularly in the context of evolving global challenges, including the West Asia situation.

The government has also announced that the increase in the commercial LPG limit to 70 per cent of the pre-March 2026 bulk consumption level will be extended to industrial units in the pharma, food, polymer, agriculture, packaging, paint, uranium, heavy water, steel, seed, metal, ceramic, foundry, forging, glass and aerosol sectors.

The Ministry of Coal has directed Coal India and Singareni Collieries to supply additional coal to states for distribution to small and medium consumers.

States have been advised to facilitate new PNG connections for domestic and commercial consumers.

The Ministry of MSME will continue to work closely with stakeholders to strengthen the resilience, competitiveness, and growth of the sector, the statement added.