Why Budget 2025 is game changer for MSME’s

The Budget 2025 introduces major reforms to boost MSMEs’ growth. The credit guarantee scheme now covers ₹10 crore, up from ₹5 crore, for small enterprises. This change will unlock ₹1.5 lakh crore in credit over five years, providing needed financial support. The government also introduced a ₹10,000 crore Fund of Funds for startups and entrepreneurship.

Revised MSME classification limits allow more businesses to benefit from government schemes. This fosters a supportive environment for MSMEs. The budget includes a scheme for first-time entrepreneurs. Women, SC, and ST entrepreneurs can get term loans of up to ₹2 crore. This promotes diversity within the business sector.

These measures aim to provide better credit access, technological upgrades, and growth incentives. MSMEs are expected to contribute significantly to India’s economic growth. The enhanced support in Budget 2025 shows the government’s commitment to nurturing this vital sector.