The Union Finance Budget 2025 stands as a milestone in India’s journey towards Viksit Bharat 2047, with a strong emphasis on inclusive economic growth. With Micro, Small, and Medium Enterprises (MSMEs) at the heart of India’s industrial and export ecosystem, the government has unveiled key measures to strengthen their role as engines of employment, innovation and self-reliance.
Currently employing 7.5 crore people, contributing 36 per cent to India’s manufacturing output, and holding a 45 per cent share in exports, MSMEs have been positioned as the backbone of India’s aspirations to become a global manufacturing hub. The 2025 budget, therefore, prioritizes investment and policy support for these enterprises to scale up operations, integrate advanced technologies, and access improved financialavenues.
Big boost
To ensure that MSMEs benefit from better economies of scale and technological advancements, the budget has proposed an upward revision in investment and turnover limits for enterprise classification. The new thresholds allow businesses to grow without losing the benefits of MSME status, thereby encouraging expansion and increased competitiveness.
Credit Cards: Recognizing the financing challenges faced by micro enterprises, the government has announced a specialized credit card scheme with a ₹5 lakh limit for businesses registered on the Udyam portal. In the first year alone, 10 lakh such cards will be issued, enabling easier access to working capital and operational funds.
Fund of Funds: Start-ups remain central to India’s innovation-driven economy.A new Fund of Funds with an expanded scope and an additional ₹10,000 crore contribution has been introduced to boost investments in emerging ventures. This move is expected to provide critical capital support to high-potential start-ups and drive entrepreneurship-led economic growth.
Entrepreneur scheme: Promoting entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs) is a key focus of the budget. A new scheme aims to support 5 lakh first-time entrepreneurs from these communities with:
- Term loans up to ₹2 crore over the next five years
- Strengthening the successful Stand-Up India scheme
- Online capacity-building programs for entrepreneurship and managerial skills
- Deep Tech Fund of Funds to accelerate next-generation start-ups in emerging sectors
Export Promotion: Toexpand India’s presence in global markets, an Export Promotion Mission will be launched, spearheaded by the Ministries of Commerce, MSME, and Finance. This mission will focus on:
- Easier access to export credit
- Cross-border factoring support to enhance liquidity for exporters
- Tackling non-tariff barriers in overseas markets
Inclusive push
The Union Finance Budget 2025 reflects the government’s commitment to strengthening the entrepreneurial ecosystem, enabling MSMEs to scale up, and making India a global leader in innovation, exports, and manufacturing. By promoting financial inclusivity and providing targeted support to small businesses and start-ups, the budget lays a strong foundation for India’s transformation into a developed economy by 2047.
As these initiatives unfold, the coming years will witness a more resilient, technology-driven, and globally competitive MSME sector—one that not only fuels India’s domestic economy but also cements its place in the global trade landscape.