The Union Budget 2025 has brought a wave of optimism for Micro, Small, and Medium Enterprises (MSMEs), recognizing their pivotal role in India’s economic growth. With a strong focus on enhancing credit access, promoting digital transformation, and simplifying compliance, the budget aims to empower MSMEs to thrive in a competitive global market. The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, emphasizes the pivotal role of Micro, Small, and Medium Enterprises (MSMEs) in India’s economic development. Key announcements related to MSMEs include:
1. Revision in MSME Classification Criteria:
- The investment and turnover thresholds for MSME classification have been increased to 2.5 times and 2 times, respectively, to encourage growth and employment generation.
2. Enhanced Credit Support:
- Credit Guarantee Cover: For Micro and Small Enterprises, the credit guarantee cover has been doubled from ₹5 crore to ₹10 crore, aiming to facilitate an additional ₹1.5 lakh crore in credit over the next five years.
- Customized Credit Cards: Introduction of customized credit cards with a ₹5 lakh limit for micro enterprises registered on the Udyam portal, with a target to issue 10 lakh such cards in the first year.
3. Support for Startups and First-Time Entrepreneurs:
- New Fund of Funds: A new Fund of Funds with a ₹10,000 crore contribution to support startups, expanding the scope of existing initiatives.
- Scheme for First-Time Entrepreneurs: A scheme to provide term loans up to ₹2 crore over the next five years for 5 lakh women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs.
4. Sector-Specific Initiatives:
- Focus Product Scheme for Footwear & Leather Sectors: A scheme aimed at enhancing productivity, quality, and competitiveness in the footwear and leather sectors, expected to generate employment for 22 lakh individuals, achieve a turnover of ₹4 lakh crore, and exports exceeding ₹1.1 lakh crore.
- National Action Plan for Toys: A scheme to develop high-quality, innovative, and sustainable toys, positioning India as a global hub for toy manufacturing.
5. National Manufacturing Mission:
- Launch of a National Manufacturing Mission covering small, medium, and large industries to further the “Make in India” initiative, providing policy support and execution frameworks.
These measures underscore the government’s commitment to strengthening the MSME sector, fostering innovation, and promoting inclusive economic growth.
For more details, refer to the official document: Union Budget 2025.