Revised Credit Guarantee Scheme, key to India's manufacturing and self-reliance goals: Piyush Goyal

New Delhi [India], May 9 (ANI): Union Minister Piyush Goyal sees the revised Credit Guarantee Scheme for Startups (CGSS), as a means to boost domestic manufacturing and will help India in heading towards Aatmanirbharta.

"Guided by the vision of PM @NarendraModi ji to strengthen India's startup ecosystem, the Credit Guarantee Scheme for Startups (CGSS) has been expanded, with increased collateral-free credit support and enhanced guarantee cover for startups," said Piyush Goyal on social media 'X'.

"Additionally, to boost domestic manufacturing and Aatmanirbharta, 27 Champion Sectors under Make In India will benefit from a reduced annual guarantee fee. This step aims to promote R&D, innovation and further energise India's entrepreneurial spirit," he added.

In a major relief for emerging startups, the government has revised the Credit Guarantee Scheme for Startups (CGSS), and doubled the maximum guarantee cover from Rs 10 Cr to Rs 20 Cr and increased guarantee coverage to up to 85 per cent of the loans up to Rs 10 Cr. The Annual Guarantee Fee has also been halved to 1 per cent for the 27 champion sectors, reducing the cost of borrowing.

Meanwhile, Rikant Pittie, CEO & Co-founder of EaseMyTrip, a successful startup lauded the government for extending the credit guarantee scheme, emphasizing its potential to significantly improve capital access for startups.

Rikant Pittie said, "This move aims to boost collateral-free debt access, improve lender participation, strengthen early-stage funding, and encourage the active participation of more startups in the formal credit ecosystem."

He added "27 Champion Sectors" identified under the 'Make in India' initiative have the potential to boost India's manufacturing and service capabilities.

The expansion of the scheme, which is in line with the announcement made in the Union Budget 2025-26, includes a significant enhancement of credit availability for startups. (ANI)