The Ministry of Finance will hold a review meeting today, October 13, on the MSME sector affected by the 50% tariff imposed by the US. The meeting will discuss reviewing the Mudra Loan Guarantee Scheme and other financial schemes and taking appropriate steps. The government's objective is to continue providing financial assistance to the MSME sector and prevent loan defaults.
MSME sector: On Monday, October 13, 2025, the Ministry of Finance will hold a review meeting on the MSME sector regarding the impact of the 50% tariff imposed by the US on India. The meeting will be attended by officials from the country's public sector banks and the ministry. Measures to reduce the pressure on the MSME industry will be determined by reviewing financial schemes such as the Mudra Loan Guarantee Scheme, PM SVANidhi, and PM Vishwakarma. The objective of the meeting is to continue financial assistance and prevent an increase in loan defaults due to the tariff.
Objective and Agenda of the Meeting
The primary objective of this review meeting by the Ministry of Finance is to understand the impact of the US tariff and determine the necessary steps for the MSME sector. Financial schemes like the Mudra Loan Guarantee Scheme will be reviewed during the meeting. Under this, it will be assessed to what extent small and medium industries can be provided relief through these schemes.
The government is also concerned that the US tariff could increase difficulties in loan repayment within the MSME sector. Suggestions will be sought from banks regarding this matter during the meeting. This process will ensure that the financial assistance scheme continues without interruption and the MSME sector remains unaffected.
Impact of US Tariffs on MSMEs
MSME industry organizations are concerned about the pressure arising from the US tariffs. Vinod Kumar, President of India SME Forum, stated that this tariff war could cause losses exceeding $30 billion to businesses in the MSME sector. Small industries and exporting companies are being most affected. They are seeking government intervention and relief in this matter.
According to experts, if the situation is not controlled, there could be a negative impact on employment and production in the MSME sector. Furthermore, increased financial risk could lead to greater difficulties in loan recovery.
Discussion on Financial Schemes
The meeting is also likely to discuss the development of micro-credit schemes such as PM SVANidhi and PM Vishwakarma. The objective of these schemes is to provide easy loans to small traders, artisans, and startups. Additionally, the performance of the new credit evaluation model launched in 2025 will be reviewed.
This model digitally verifies the authenticity of data and accelerates the loan approval process. Through this model, banks receive real and verified information, saving time in loan disbursement and making the process transparent.
Role of Government and Banks
During the meeting, the Ministry of Finance and the concerned public sector banks will also examine how existing financial schemes can be made more effective. Necessary steps will be taken in consultation with banks to safeguard businesses in the MSME sector.
Furthermore, the meeting will consider identifying tariff-affected sectors and providing them with special financial assistance. The aim is to ensure that the pressure on the country's small and medium industries due to the US tariffs is minimized.
Potential Outcomes
Experts believe that the decisions from this meeting could prove crucial for the MSME sector. The steps taken during the meeting will not only strengthen the financial position of industries but also boost the confidence of investors and traders.
Concurrently, the review of the financial assistance schemes being implemented by the government will clarify which policies are performing better and which require improvement.
