FM announces New Scheme for 5 lakh Women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs in Union Budget 2025

The Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1st, 2025 at 11:00 AM before the Parliament, putting forth a new scheme for 5 lakh women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs.

The most anticipated Union Budget is being presented in Parliament. The Finance Minister announced various schemes for the agriculture sector and MSMEs in the Budget Speech. Nirmala Sitharaman revealed that currently there are over 1 crore MSMEs employing 7.5 crore people. 

The Finance Minister announced a new scheme for women and marginalized communities. The Budget proposes to implement a new scheme for 5 lakh women, Scheduled Castes and Scheduled Tribes who are first-time entrepreneurs. 

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Five lakh first-time entrepreneurs from women, scheduled castes, and scheduled tribes are likely to get term loans, which will be economically empowering and also increase the number of women, SC, and ST entrepreneurs. The Scheme announced that women, SC,and  ST will likely get Rs. 2 crore as loans.

Finance Minister Nirmala Sitaraman said, “A scheme will be launched for 5 lakh women SC/ST first-time entrepreneurs. This scheme will provide term loans up to Rs 2 crore during the next five years. It will incorporate lessons from the successful Standup India scheme.”

She also added that online capacity building for entrepreneurship and managerial skills will be organized to develop entrepreneurs’ skills. The development of the Country lies in the development of all communities. This scheme increases the inclusivity of women and marginalized communities in the economy.

Expected Impact on Economic Growth

• Empowerment of Women Entrepreneurs: More women-led businesses mean greater financial independence and enhanced decision-making power for women in households and communities.
• More SC/ST-Owned Enterprises: With dedicated financial support, SC and ST entrepreneurs will have equal opportunities to establish successful businesses, reducing economic disparity.
• Strengthening Rural and Urban Economies: Many of these entrepreneurs will likely set up businesses in semi-urban and rural areas, leading to local job creation and economic revitalization.
• Reduction in Financial Barriers: The availability of term loans with flexible conditions will help first-time entrepreneurs overcome the challenges of capital investment, a critical hurdle for many new business owners.

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