In a bid to boost the Micro, Small, and Medium Enterprises (MSME) sector, the Ministry of MSME in New Delhi highlights its investor-friendly policies, facilitating Foreign Direct Investment (FDI) in various activities, including MSMEs, under the automatic route, subject to applicable laws and regulations.

While no specific study has been conducted on the pros and cons of foreign investment in MSMEs, the Ministry actively implements schemes like MSME Champions, CGTMSE, PMEGP, MSE-CDP, and RAMP to promote sectoral growth. Notable government initiatives include collateral-free loans, a Rs. 50,000 crore equity infusion through the Self Reliant India Fund, revised MSME classification criteria, and the 'Udyam Registration' for streamlined business operations. The government's commitment is further evident through no global tenders for procurements up to Rs. 200 crore, inclusion of retail and wholesale trades as MSMEs, and non-tax benefits extended for three years in case of an upward change in MSME status. Additionally, the launch of the Udyam Assist Platform (UAP) and 'PM Vishwakarma' Scheme demonstrates a holistic approach to formalizing and empowering the MSME sector, attracting both foreign investments and providing comprehensive support for sustainable growth.