What Nirmala Sitharaman's Budget says about MSMEs

Finance Minister Nirmala Sitharaman said micro, small and medium enterprises (MSMEs) are responsible for 45% of India's exports

Updated on: Feb 1, 2025, 15:54:43 IST

By HT News Desk

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Finance Minister Nirmala Sitharaman said the investment limit for the classification of micro, small and medium enterprises (MSMEs) would be increased 2.5 times during the presentation of the Union Budget 2025 in parliament at 11 pm on Saturday, February 1, 2025.

New Delhi: Union Finance Minister Nirmala Sitharaman presents the Union Budget 2025-26 in the Lok Sabha. (Sansad TV)

Stating that MSMEs are responsible for 45% of India's exports, she also added that the turnover limit for a business to be classified as an MSME would be doubled.

Also Read: Union Budget: Import taxes cut in boost for electronics production

At the moment, India has over one crore registered MSMEs, employing nearly 7.5 crore people.

Such MSMEs will also have their credit guarantee cover enhanced from ₹5 core to ₹10 crore.

“There is a great deal of credit support with credit cards from the government for Micro and Small enterprises," said Shridhar Kamath, Partner and Engineering & Industrial Products Industry Leader, Grant Thornton Bharat.

Also Read: ‘FDI limit for insurance sector to be raised to 100%’: Nirmala Sitharaman

However, “we need to wait for details in the annexure D to understand support for access to technology, efficiency and productivity improvements to ensure competitiveness,” he added

"With all the focus on sectors like food processing, agri, fisheries and aquaculture, clean tech manufacturing etc. plus infrastructure, a lot of the equipment that goes into these manufacturing units will allow a significant amount of benefit to small and medium enterprises,” he elaborated.

Also Read: How the budget can deliver Viksit Bharat

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HT News Desk
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