Union Budget 2025: Investment Limits For MSMEs, Startups Doubled To Spur Business Growth

In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced a series of initiatives aimed at strengthening the economy.

According to the Finance Minister, MSMEs, startups, and manufacturing, ensuring higher growth, financial support, and global competitiveness will be one of the focus areas for the government.

To enhance business capacity, investment and turnover limits for MSMEs have been doubled from Rs 5 crore to Rs 10 crore, while for startups, the limit has increased from Rs 10 crore to Rs 20 crore.

A Customised Credit Card with Rs 5 lakh cover will be introduced, with 10 lakh cards set to be issued in the first year. Additionally, the Credit Guarantee Scheme has been expanded to Rs 20 crore, ensuring easier loan access for small businesses.

A new scheme will support 5 lakh SC/ST first-time women entrepreneurs in MSMEs, offering term loans of up to Rs 2 crore for the next five years. The Focus Product Scheme for the footwear sector aims to generate 22 lakh jobs and boost exports beyond Rs 1 lakh crore.

Key missions include making India a global hub for toys and launching a National Manufacturing Mission to support clean tech industries.

Additionally, the National Institute of Food Technology, Entrepreneurship, and Management will be set up in Bihar to drive innovation in food processing.