New Delhi, March 22 -- The Central Government modified the Mutual Credit Guarantee Scheme (MCGS-MSME) to bolster manufacturing and export capabilities within the micro, small, and medium enterprise sector, following the roadmap established in Budget 2025-26.

According to the Ministry of Finance on Saturday, these adjustments aim to increase credit availability for purchasing plants and machinery. The ministry stated that the modifications address feedback received from MSMEs and lending institutions to make the credit facility more accessible and responsive to industry needs.

Under the revised guidelines, the government expanded the scope of the scheme to include MSMEs operating in the service sector. One significant change involves the...