Union Budget 2025-26- A transformative budget for MSME this year! February 21, 2025 MSME Sampark Msme News 0 The Union Budget 2025-26 introduces major reforms to support Micro, Small, and Medium Enterprises (MSMEs), recognizing them as key drivers of economic growth and job creation. The government has focused on expanding credit access, increasing investment limits, and providing targeted support to specific industries and disadvantaged entrepreneurs. To help MSMEs scale operations and adopt advanced technologies, the government has raised the investment limit by 2.5 times and the turnover threshold by 2 times. The table below shows the difference: Type Old Investment Revised Investment Old Turnover Revised Turnover Micro ₹1 crore ₹2.5 crore ₹5 crore ₹10 crore Small ₹10 crore ₹50 crore ₹50 crore ₹100 crore Medium ₹50 crore ₹125 crore ₹250 crore ₹500 crore This move ensures that growing enterprises continue to benefit from MSME classification, which provides easier access to loans, tax benefits, and incentives. Enhanced Credit Support for MSMEs & Startups Higher Loan Guarantee for Small Businesses: Earlier, MSMEs could get a loan guarantee of up to ₹5 crore. Now, this has been doubled to ₹10 crore, making it easier for businesses to secure funding. Over the next five years, this will unlock ₹1.5 lakh crore in additional loans, helping small businesses expand, buy new equipment, and hire more workers. Boost for Startups: The loan guarantee cover for startups has been raised from ₹10 crore to ₹20 crore. This will help startups secure more funding for innovation and growth. Additionally, startups in 27 priority sectors (such as AI, fintech, and healthcare) will pay a lower loan guarantee fee of just 1%, reducing borrowing costs. Support for Exporters: MSMEs that export goods can now access term loans up to ₹20 crore with a higher guarantee cover, helping Indian exporters compete globally, expand production, and increase sales in international markets. Financial Assistance for First-Time Entrepreneurs from Disadvantaged Communities The budget introduces special financial assistance for: Women entrepreneurs Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs Individuals from economically weaker backgrounds Under the new scheme, 5 lakh first-time entrepreneurs will receive term loans up to ₹2 crore over five years. This builds on the Stand-Up India initiative, which has already supported thousands of marginalized entrepreneurs. Sector-Specific Support: Footwear, Leather & Toy Industries To boost India’s manufacturing and exports, the government has introduced targeted support for footwear, leather, and toy industries: Footwear & Leather Industry: The Focus Product Scheme will support design innovation, component manufacturing, and non-leather footwear production. This initiative aims to create 22 lakh jobs and achieve a ₹4 lakh crore turnover. Toy Industry: Investment in cluster development and skill-building programs will help India become a global toy manufacturing hub, reducing dependency on imports. Conclusion The Union Budget 2025-26 is a game-changer for MSMEs and startups. With easier access to credit, increased investment limits, and sector-specific incentives, India is fostering a business-friendly environment that promotes growth, employment, and global competitiveness. This budget empowers small businesses, supports new entrepreneurs, and strengthens India’s economic future. If you’re an MSME owner or startup founder, now is the time to take advantage of these initiatives! FinancePopular Articles Msme News MSMEs Present Significant Opportunities for UCB Sector: RBI DGM Msme News India’s MSME Growth Challenge: Bridging the Gap from Micro to Large Enterprises Msme News MSME Sampark x Build Bharat Expo 2025 – Transforming MSMEs, Shaping India’s Future Msme News Startup Mahakumbh 2025 is ready to host 3000+ startups in New Delhi Msme News A.P. Chambers and ICC Partner to Strengthen MSME Sector and Global Market Linkages Msme News ₹30 Crore in Grants! Apply for Startup MahaRathi Challenge Msme News YES BANK Drives Innovation and Growth for South India’s MSMEs Msme News JrnyOn launches a series of travel experiences led and curated by domain experts and content creators IPO News Hero Motors Withdraws Rs 900 Crore IPO Plans Msme News Union Budget 2025-26- A transformative budget for MSME this year!
Msme News Government Should Be First Customer of Startups, Says Amitabh Kant April 5, 2025 Rahul Singh Msme News 0 New Delhi: At the ongoing Startup Mahakumbh 2025 held at Bharat Mandapam, G20 Sherpa Amitabh Kant emphasized the need for India to focus more on deeptech innovation. He said that for startups to grow […]
Msme News Govt. of India Revises MSME Classification Criteria Effective April 1, 2025 March 25, 2025 Rahul Singh Msme News 0 New Delhi: In a significant move to strengthen the Micro, Small, and Medium Enterprises (MSME) sector, the Government of India has announced revised investment and turnover thresholds for MSME classification. Effective from April 1, 2025, […]
Msme News Modi 3.0 100 Days: Commerce Ministry Initiatives to Support MSME Exporters September 18, 2024 MSME Sampark Msme News 0 During the first 100 days of the Modi 3.0 government, the Commerce Ministry has introduced several key measures aimed at supporting MSME exporters, who are facing challenges due to global geopolitical tensions. One of the […]
Be the first to comment