India's MSME green financing scheme faces severe implementation challenges with only 3.7% of targeted interest subvention disbursed. The MSE GIFT scheme, designed to help micro and small businesses adopt renewable energy and energy-efficient machinery, has released just 13.22 crore rupees against a target of 350 crore rupees since its launch in 2023-24. With the scheme set to end on March 31, experts are calling for urgent reviews and amendments. Given that India's 77 million MSMEs account for 45% of exports and 30% of GDP, this underperformance raises concerns about the country's ability to meet environmental standards like the EU's Carbon Border Adjustment Mechanism. The low uptake suggests potential gaps in scheme design, business awareness, or accessibility that require immediate government intervention and stakeholder consultation.
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