The Union Budget 2025 was presented by the Finance Minister, Nirmala Sitharaman, on February 1st, 2025, at 11:00 a.m., before the Parliament. The Union Budget is the annual financial statement presented by the Government of India, outlining its estimated revenue and expenditure for the upcoming fiscal year and serving as a roadmap for the country’s economic priorities.
The FM stated that India’s Micro, small, and Medium Enterprises ( MSMEs ) are the second key pillar for economic growth in the country and announced key reformations in investment, turnover limits, and credit availability for the MSME sector to cater to business expansions and improve access to finance.
Union Budget 2025: In-Depth Analysis for Strategic Insights, Click Here
The FM stated that over 5.7 Crore MSMEs, including more than 2 Crore registered enterprises employing almost 7.5 Crore people, have played a crucial role in the country’s economic growth. The government has chosen to raise the investment requirement for MSMEs to 2.5 times the present threshold in an effort to further boost this growth, enabling more companies to take advantage of financial assistance and incentives. The budget guarantees that MSMEs would receive assistance and direction to expand and provide employment for the nation’s young people.
The MSMEs’ credit guarantee cover has increased from ₹5 crore to ₹10 crore. Improved liquidity and increased access to finance are the goals of this phase for small firms. The loan guarantee cover has been increased from ₹10 Crore to ₹20 Crores to further encourage MSMEs because the government understands how important startups are.
The Budget introduces a customized credit card for micro-enterprises with a ₹5 lakh limit, fostering their unique financial needs and further promoting business activity. The FM further stated that these reforms align with the PM Modi led, government’s vision of an” Atmanirnhar Bharat’or a self-reliant India, which aims to grow innovation, entrepreneurship and job creation
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