Union Budget 2025: Higher MSME Credit Limits, BharatTradeNet Launch, More Boosts For Startups

Budget 2025: The Government will establish an Export Promotion Mission, involving the Ministries of Commerce, MSME, and Finance, to streamline export activities.

To help MSMEs scale up operations, Sitharaman announced an increase in investment and turnover limits for classification.

Source : PTI

Budget 2025: Union Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024, introducing a series of reforms aimed at fostering growth in the Micro, Small, and Medium Enterprises (MSME) sector. The initiatives also target export promotion and financial support for startups and first-time entrepreneurs.

MSME Classification Criteria Revised

To help MSMEs scale up operations, Sitharaman announced an increase in investment and turnover limits for classification. These thresholds have been enhanced to 2.5 times and 2 times the current levels, respectively, encouraging businesses to expand operations and generate employment.

New Export Promotion Mission

The Government will establish an Export Promotion Mission, involving the Ministries of Commerce, MSME, and Finance, to streamline export activities. This initiative will enable MSMEs to access export credit more easily, benefit from cross-border factoring, and navigate non-tariff barriers in global markets.

BharatTradeNet: A Unified Trade Platform

A digital public infrastructure named 'BharatTradeNet' (BTN) will be created as a comprehensive platform for trade documentation and financing solutions. Designed to complement the Unified Logistics Interface Platform, BTN will align with global standards to support international trade.

Credit and Financing Boost for Enterprises

To enhance credit availability, significant changes have been announced:

• Credit guarantee cover for micro and small enterprises will double from Rs 5 crore to Rs 10 crore, unlocking an additional Rs 1.5 lakh crore in credit over five years.
• For startups, the cover will increase from Rs 10 crore to Rs 20 crore, with reduced guarantee fees for loans in 27 key sectors.
• Customised credit cards with a Rs 5 lakh limit will be introduced for micro-enterprises registered on the Udyam portal, with 10 lakh cards to be issued in the first year.

New Fund of Funds and Support for Entrepreneurs

A fresh Fund of Funds with a Government contribution of Rs 10,000 crore will support startups. Additionally, a scheme targeting 5 lakh women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs will offer term loans of up to Rs 2 crore over five years.

Labour-Intensive Sectors in Focus

To drive employment growth, the Government will roll out specific policies and facilitation measures for labour-intensive industries.

These reforms underline the Government’s commitment to positioning India as a global manufacturing and trade hub, empowering MSMEs, and promoting entrepreneurial growth.