Revamped Credit Guarantee Scheme Crucial for India’s Manufacturing and Self-Reliance Ambitions: Piyush Goyal

New Delhi [India], May 9 (ANI): Cabinet Minister

Piyush Goyal

sees the updated Credit Guarantee Program for New Businesses (

CGSS

), acting as a catalyst for enhancing local production and will assist India in moving towards

Aatmanirbharta

.

“Driven by Prime Minister @NarendraModi ji’s vision to bolster India’s startup environment, the Credit Guarantee Scheme for Startups (

CGSS

“) has been enlarged, offering more collateral-free credit assistance and improved guarantee coverage for startups,” noted

Piyush Goyal

on social media ‘X’.

In addition, to enhance local production capabilities,

Aatmanirbharta

The 27 Champion Sectors as part of the ‘Make In India’ initiative will enjoy a lower annual guarantee fee. This measure is intended to boost research and development, encourage innovation, and invigorate entrepreneurship in India,” he stated.

To provide significant support to budding startups, the government has updated the Credit Guarantee Scheme for Startups (

CGSS

It has doubled the highest insurance coverage limit from Rs 10 Crore to Rs 20 Crore and expanded the insurance protection to encompass up to 85 percent of loans totaling up to Rs 10 Crore. Additionally, the yearly guarantee fee has been reduced by half to 1 percent for the 27 key industries, thereby lowering the expense of obtaining credit.

Meanwhile,

Rikant Pittie

The CEO and co-founder of EaseMyTrip, a thriving startup praised the government for expanding the credit guarantee program, highlighting its capacity to substantially enhance funding opportunities for new businesses.

Rikant Pittie

stated, “The objective of this step is to enhance accessibility to loan without collateral, increase involvement from lenders, reinforce initial phase financing, and motivate greater engagement of start-ups within the structured credit system.”

He included “27 Champion Sectors” marked under the ‘

Make in India

The initiatives hold the potential to enhance India’s manufacturing and service sectors.

The growth of the program aligns with the statement presented in the Union Budget for 2025-26 and involves a substantial increase in credit accessibility for startup companies. (ANI)