
Budget Announcements for MSMEs and Startups :: Budget 2025-26
Hon'ble Finance Minister has agreed that supporting MSME is as one of the proposed development measures.
Announcement No 1.
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.
Thus, the new definition is as under
Micro Investment up to 2.5 from 1 cr and turnover 10 cr from 5 cr
Small Investment up to 25 cr from 10 cr and turnover 100 cr from 50 cr
Medium Investment up to 125 cr from 50 cr and turnover 500 cr from 250 cr
Announcement No 2
Enhancement of Credit Guarantee for collateral free loans to Micro and Small Enterprises. Increased from 5 crore to 10 crore of loans. Thus, additional credit of 1.5 lakh crore in the next 5 years.
Announcement No. 3
Credit Guarantee for collateral free loans to well-run exporter MSMEs for term loans up to Rs. 20 crore
Announcement No. 4
customized credit cards with Rs. 5 lakh limit for micro enterprises registered on Udyam portal. In the first year, 10 lakh cards will be issued.
Announcement No. 5
Scheme for First-time Entrepreneurs
A new scheme will be launched for 5 lakh women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs. provide term loans up to 2 crore during the next 5 years.
Announcement No. 6
Measures for Labour-Intensive Sectors
To promote employment and entrepreneurship opportunities in labour-intensive sectors, our government will undertake specific policy and facilitation measures.
Announcement No. 7
Focus Product Scheme for Footwear & Leather Sectors
To enhance the productivity, quality, and competitiveness of India’s footwear and leather sector, a focus product scheme will be implemented. The scheme will support design capacity, component manufacturing, and machinery required for the production of non-leather quality footwear, besides the support for leather footwear and products.
The scheme is expected to facilitate employment for 22 lakh persons, generate turnover of 4 lakh crore, and exports of over 1.1 lakh crore.
Announcement No. 8
Measures for the Toy Sector
For Building on the National Action Plan for Toys, we will implement a scheme to make India a global hub for toys. The scheme will focus on the development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys. This will represent the 'Made in India' brand.
Announcement No. 9
Support for Food Processing
will establish a National Institute of Food Technology, Entrepreneurship and Management in Bihar. The institute will provide a strong fillip to food processing activities in the entire Eastern region.
This will result in two things (1) enhanced income for the farmers through value addition to their produce, and (2) skilling, entrepreneurship, and employment opportunities for the youth.
Announcement No. 10
Manufacturing Mission - Furthering “Make in India”
Our Government will set up a National Manufacturing Mission covering small, medium and large industries for furthering “Make in India” by providing policy support, execution roadmaps, governance and monitoring framework for central ministries and states.
FOLLOWING ARE THE ANNOUNCEMENTS FOR STARTUPS
Announcement No. 1
Enhancement of Credit Guarantee for collateral free loans to startups increased from Rs 10 crore to 20 crore
Announcement No. 2
Guarantee fee collateral free loans to startups to be 1 per cent for loans in 27 focus sectors. It is important for Atmanirbhar Bharat.
Announcement No. 3
Fund of Funds for Startups
new Fund of Funds, with expanded scope and a fresh contribution of another
Rs. 10,000 crore will be set up.
Already Alternate Investment Funds (AIFs) for startups have received commitments of more than 91,000 crore. These are supported by the Fund of Funds set up with a government contribution of 10,000 crore.
Announcement No. 4.
Deep Tech Fund of Funds
A Deep Tech Fund of Funds will also be explored to catalyze the next generation startups as a part of this initiative
Announcement No. 5
Extension of time limit u/s 80-IAC for startups:
It is proposed to extend the benefit provided under Section 80-IAC to startups for another period of five years, i.e., the benefit will be available to eligible start-ups incorporated before 01.04.2030.
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