New Delhi: The Union Budget 2025-26 sees the next five years as a unique opportunity to realize ‘Sabka Vikas’, stimulating balanced growth of all regions and achieving the goal of Viksit Bharat.
The Union Budget defines MSMEs as one of the powerful engines for the story of development and the proposed development measures supports MSMEs to accelerate growth and secure inclusive development.
While presenting the Union Budget 2025-26 in Parliament today, the Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman said “To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.”
Smt. Sitharaman stated that currently, over 1 crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub. She also remarked “With their quality products, these MSMEs are responsible for 45 per cent of our exports.”
She said that to improve access to credit, the credit guarantee cover will be enhanced:
a) For Micro and Small Enterprises, from 5 crore to 10 crore, leading to additional credit of 1.5 lakh crore in the next 5 years;
b) For Startups, from 10 crore to 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat; and
c) For well-run exporter MSMEs, for term loans up to 20 crore.