The Union Budget 2025 presented on 11st february,2025 proposed changes for benefits of MSME. The proposals are as follows
Revision in classification criteria for MSMEs
| ₹ in Crore | Investment | Turnover | ||
| Current | Revised | Current | Revised | |
| Micro Enterprises | 1 cr | 2.5 cr | 5 cr | 10 cr |
| Small Enterprises | 10 cr | 25 cr | 50 cr | 100 cr |
| Medium Enterprises | 50 cr | 125 cr | 250 cr | 500 cr |
New Credit Card Scheme to Support Micro Enterprises with ₹5 Lakh Limit
The government is launching a scheme to offer customised credit cards for micro enterprises (small businesses) that are registered on the Udyam portal. These cards will have a credit limit of ₹5 lakh. The aim is to help small businesses easily access funds for their operations.
In the first year, the goal is to issue 10 lakh of these credit cards to eligible micro enterprises. This will help businesses manage their finances better and support their growth.
- New Loan Scheme to Support 5 Lakh First-Time Entrepreneurs, Including Women and Marginalized Groups
A new scheme is being launched to support 5 lakh first-time entrepreneurs, including women and people from Scheduled Castes (SC) and Scheduled Tribes (ST).
This scheme will offer term loans of up to ₹2 crore over the next 5 years, helping new business owners get the funds they need to start and grow their businesses.
Manufacturing mission with the mandate to focus on
• Ease and cost of doing business;
• Future ready workforce for in demand jobs;
• A vibrant and dynamic MSME sector;
• Availability of technology;
• Quality products;
• Clean tech manufacturing for climate-friendly development.
Significant enhancement of credit availability with guarantee cover
| ₹ in Crore | Credit guarantee cover | |
| Current | Revised | |
| MSEs | 5 | 10 |
| Startups | 10 | 20 |
| Exporter MSMEs | For Term Loans Up To 20 Crore | |
Measures for Labour Intensive Sectors
• Focus Product Scheme for Footwear & Leather Sectors: scheme is expected to
facilitate employment for 22 lakh persons, generate turnover of ₹ 4 lakh crore and
exports of over ₹ 1.1 lakh crore.
• Measures for the Toy Sector: To focus on development of clusters, skills, and a
manufacturing ecosystem that will create high-quality, unique, innovative, and
sustainable toys to represent the ‘Made in India’ brand.
• Support for Food Processing: Establishment of a National Institute of Food Technology in Bihar, enhanced income for the farmers and skilling, entrepreneurship and employment opportunities for the youth.