Over the years, government budgets have aimed to support MSMEs through credit access, tax relief, and digitalisation initiatives. While these efforts improved formalisation and access to structured funding, significant hurdles remained.
Budget 2025 lays a strong foundation for MSME growth by removing outdated constraints, improving credit accessibility, and fostering industry-specific advancements. As the government refines these policies, MSMEs must proactively engage with these opportunities to drive sustained expansion, innovation, and leadership in a rapidly evolving economy.
Key reforms in budget 2025
1. Higher investment and turnover limits
- Earlier - MSMEs were restricted by outdated classification limits, leading many to forgo expansion opportunities to retain benefits.
- Now - The investment limit has increased 2.5x, allowing businesses to grow, invest in technology, and expand operations without losing MSME status.
- Impact - Mid-sized MSMEs can now scale without hesitation, while micro and small enterprises continue to receive competitive benefits.
2. Improved credit access and funding support
- Earlier - Many MSMEs struggled to secure loans due to stringent collateral requirements and high interest rates.
- Now - The Credit Guarantee Scheme has been expanded, doubling the cover from ₹5 crores to ₹10 crores for micro and small enterprises, while start-ups now receive up to ₹20 crores.
- Impact - This will lower financial risk for lenders and provide easier access to funding for businesses looking to modernise or expand.
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