Budget 2025: FM Proposes Rs. 5 Lakh Customized Credit Cards for Micro-Enterprises Registered on Udyam Portal
Finance Minister proposes Rs. 5 lakh credit cards for micro-enterprises, expanded startup funding
Budget 2025 – FM Proposes – Customized Credit Cards – Credit Cards – Udyam Portal – Union Budget 2025 – Budget 2025 India – Budget 2025 Updates – taxscan
Budget 2025 – FM Proposes – Customized Credit Cards – Credit Cards – Udyam Portal – Union Budget 2025 – Budget 2025 India – Budget 2025 Updates – taxscan
Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1st, 2025, at 11:00 AM before the Parliament. FM during the budget speech proposed increased investment limits, easier access to credit, and special schemes to support small businesses in India.
Rs. 5 Lakh Credit Cards for Micro Enterprises
To empower small businesses, the government will introduce customized credit cards with a Rs. 5 lakh limit for micro-enterprises registered on the Udyam portal.
- 10 lakh credit cards will be issued in the first year
- Provides easy access to credit for small businesses
- Helps micro-enterprises manage business expenses and expand operations
This move will enable small-scale entrepreneurs to get formal credit without facing heavy documentation and approval challenges.
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New Fund of Funds to Boost Startups
The Alternate Investment Fund (AIF) for Startups has already received commitments of over Rs. 91,000 crore, supported by the Fund of Funds set up by the Government of India with a Rs. 10,000 crore contribution.
Now, to further encourage innovation and entrepreneurship, the government has announced:
- A new Fund of Funds with an expanded scope
- A fresh Rs. 10,000 crore contribution to support startups
This additional funding will help new businesses scale up, drive innovation, and strengthen India's position as a global startup hub.
Read More: https://www.taxscan.in/union-budget-2025-key-highlights/485585/
Support for Labor-Intensive Sectors
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The government also recognized the need to boost employment and support labor-intensive industries, particularly in the footwear and leather sector.
- Specific policy measures to improve productivity, quality, and competitiveness
- Focused product scheme to support design, component manufacturing, and machinery
- Encouragement of non-leather, high-quality footwear manufacturing
- Continued support for leather footwear and leather products
This initiative will generate more jobs, enhance exports, and improve the global standing of India’s footwear and leather industry.
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