Union Finance Minister Nirmala Sitharaman on Saturday announced significant measures to bolster more than 1 crore registered micro, small, and medium enterprises (MSMEs), employing 7.5 crore people and generating 36 per cent of the country’s manufacturing.
With their quality products, these MSMEs are responsible for 45 per cent of our exports, the Finance Minister said while presenting the Budget 2025-26.
To help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times, respectively.
"This will give them the confidence to grow and generate employment for our youth," said the Finance Minister.
To improve access to credit, the credit guarantee cover will be enhanced. For micro and small enterprises, it will be enhanced from Rs 5 crore to 10 crore, leading to additional credit of Rs 1.5 lakh crore in the next 5 years.
"For startups, it will be increased from Rs 10 crore to Rs 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat," FM Sitharaman said, adding that for well-run exporter MSMEs, credit availability with guarantee cover will be for term loans up to Rs 20 crore.
“We will introduce customised credit cards with a Rs 5 lakh limit for micro-enterprises registered on Udyam portal. In the first year, 10 lakh such cards will be issued," she said.
The Alternate Investment Funds (AIFs) for startups have received commitments of more than Rs 91,000 crore. These are supported by the Fund of Funds, set up with a government contribution of Rs 10,000 crore.
Now, a new Fund of Funds, with an expanded scope and a fresh contribution of another Rs 10,000 crore will be set up.
A new scheme will be launched for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. This will provide term loans up to Rs 2 crore during the next 5 years.
The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organised, the Finance Minister said.
To promote employment and entrepreneurship opportunities in labour-intensive sectors, "our government will undertake specific policy and facilitation measures", FM Sitharaman added.
With more than 1.59 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as of January 15, India has firmly established itself as the third-largest startup ecosystem in the world.
PM Modi congratulates CBSE students, says 'one exam can never define you'
Prime Minister Narendra Modi on Tuesday congratulated lakhs of students across India who appeared for the Class 10 and 12 Board examinations, as the Central Board of Secondary Education (CBSE) announced the results.
Defence Minister Rajnath Singh reviews security with top officials, chiefs of forces
A day after Prime Minister Narendra Modi outlined the new normal in the country’s tough anti-terror policy, Defence Minister Rajnath Singh on Tuesday reviewed the security situation with top officials and chiefs of forces.
CBSE Class 10 results declared; girls outperformed boys once again
The Central Board of Secondary Education (CBSE) announced the Class 10 Board exam results for 2025 on Tuesday. This year, an impressive 93.66 per cent of students passed the examination. Over 23 lakh students appeared for the exam, which was held at 7,837 centres across 26,675 affiliated schools.
Chinese missile maker's stock tanks over 6 pc after India destroys its air weapon
The shares of Zhuzhou Hongda Electronics Corp Ltd, the Chinese defence company that manufactures the PL-15 missile, dropped sharply by 6.42 per cent or 2.56 Yuan to 37.33 Yuan on Tuesday, after India's air defence system successfully intercepted and destroyed the missile during the conflict with Pakistan.
Three terrorists killed in J&K gunfight
Three terrorists were killed on Tuesday in a gunfight with the joint forces in Keller area of Jammu and Kashmir's Shopian district. V. K. Birdi, IGP (Kashmir), told reporters that three terrorists have been killed.
CBSE announces Class 12 result; pass percentage 88.39 per cent
The Central Board of Secondary Education (CBSE) on Tuesday declared the results for the Class 12 examinations, in which girls once again outperformed boys.
India is eternally grateful to armed forces: PM Modi visits Adampur Airbase after 'Operation Sindoor'
Prime Minister Narendra Modi on Tuesday morning visited the Adampur Airbase in Punjab to meet Indian Air Force personnel and express the nation's gratitude for their courage and fearlessness in defending the country.
Devotees throngs Venuban Vihar; meditates and offer prayer to Lord Buddha
Along with the rest of the world, Buddha Purnima was observed here at Agartala with a traditional fervour to mark not only the day when Gautam Buddha was born, but also the day when he attained Nirvana under the Mahabodhi tree at Bodh Gaya.