Finance Minister Nirmala Sitharaman unveiled new MSMEs classification criteria in Budget 2025, in an effort to bring more businesses into the MSME sector.
Reetu | Feb 1, 2025 |
Union Budget 2025: FM Enhances MSME Classification; New Scheme for Startups
The Union Budget 2025 presented in the parliament today by Finance Minister Nirmala Sitharaman brought major changes. Finance Minister Nirmala Sitharaman unveiled new MSMEs classification criteria in an effort to bring more businesses into the MSME sector.
FM said in her Budget speech, “To help them in achieving greater scale efficiencies, technical advancement, and improved capital access, the investment and turnover limitations for all MSMEs will be increased to 2.5 and 2 times, respectively. This will give them the confidence to expand and create jobs for our youth.”
Various other measures also taken to boots MSMEs sectors.
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.
For 5 lakh first-time entrepreneurs, including women, Scheduled Castes and Scheduled Tribes, a new scheme is to be launched to provide term loans up to Rs.2 crore during the next 5 years.
The mission of manufacturing with mandate to focus on:-
Focus Product Scheme for Footwear and Leather Sectors: scheme is expected to facilitate employment for 22 lakh persons, generate turnover of Rs.4 lakh crore and exports of over Rs.1.1 lakh crore.
Measures for the Toy Sector: To focus on development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys to represent the ‘Made in India’ brand.
Support for Food Processing: Establishment of a National Institute of Food Technology in Bihar, enhanced income for the farmers and skilling, entrepreneurship and employment opportunities for the youth.
For startups, Sitharaman committed to establish a new fund of funds with an additional Rs.10,000 crore, in addition to the present government investment of Rs.10,000 crore.
“The Alternative Investment Funds (AIFs) for startups have received commitments of more than Rs.91,000 crore,” the Finance Minister stated during her speech.
The Sidbi Fund of Funds is a flagship plan for the government’s Startup India initiative. The fund was established on January 16, 2016, and invests in Alternative Investment Funds (AIFs) rather than directly investing startups. According to its data, Sidbi has helped 144 AIFs secure capital commitments.
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