The Union Budget 2025-26 introduces several initiatives to bolster the Micro, Small, and Medium Enterprises (MSME) sector. consider highlighting the following key points:
1. Enhanced MSME Classification Criteria:
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Investment and Turnover Limits: 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. Customized Credit Cards for Micro Enterprises:
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Credit Limit: Introduction of customized credit cards with a ₹5 lakh limit for micro enterprises registered on the Udyam portal.
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Distribution Goal: Target to issue 10 lakh such cards in the first year to enhance financial accessibility.
3. New Fund of Funds for Startups:
4. Scheme for First-Time Entrepreneurs:
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Target Beneficiaries: A new scheme aimed at 5 lakh women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs.
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Financial Support: Provision of term loans up to ₹2 crore over the next five years to encourage entrepreneurship among underrepresented groups.
5. Focus Product Scheme for Footwear & Leather Sectors:
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Objective: Enhance productivity, quality, and competitiveness in the footwear and leather sectors.
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Expected Outcomes: Creation of employment for 22 lakh individuals, generation of a turnover of ₹4 lakh crore, and exports exceeding ₹1.1 lakh crore.
6. Measures for the Toy Sector:
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Initiative: Launch of a scheme to develop high-quality, unique, innovative, and sustainable toys.
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Goal: Position India as a global hub for toy manufacturing, promoting indigenous industries.
7. National Manufacturing Mission:
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Scope: Introduction of a National Manufacturing Mission covering small, medium, and large industries.
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Aim: Furthering the “Make in India” initiative to boost domestic manufacturing capabilities.
These initiatives underscore the government’s commitment to strengthening the MSME sector, fostering innovation, and promoting inclusive economic growth.
Union Budget 2025-26: Key Announcements for Startups – Tax Benefits, Funding, & Growth Initiatives
Union Budget 2025-26: Key Impacts on the Cooperative Sector and Rural Economy