Finance Minister Nirmala Sitharaman announced to increase the investment limit by 2.5 times for classification of micro, small and medium enterprises (MSME) in Budget 2025. He said that MSMEs handle 45% of India’s exports and many important steps will be taken for the growth of this sector.
Describing MSME as the second engine of India’s economy, the Finance Minister said that there are 5.7 crore enterprises in the region, of which more than one crore have been registered. It provides employment to 7.5 crore people and contributes 36% to the country’s manufacturing sector. Through this, India is emerging as a global manufacturing hub, which contributes 45% of the total exports.
To accelerate the growth of MSME, the government will increase the investment and business limit by 2.5 times and 2 times respectively, so that this area not only proceeds, but also can create more employment opportunities for innovation and youth.
For women, scheduled castes and scheduled tribe entrepreneurs, the government will provide loans up to Rs 2 crore for the first time. Under this, about five lakh women and other special class entrepreneurs will get benefit.
Additionally, the Finance Minister announced to launch a manufacturing mission for SMEs and large industries and also said that the government would take steps to increase productivity of areas where more labor is required.
In addition, the loan guarantee ‘cover’ will be doubled to Rs 20 crore and the guarantee fee will be reduced to one percent. Apart from this, the establishment of National Institute of Food Technology, Entrepreneurship and Management was also announced in Bihar.
