In a significant move to foster growth in the Micro, Small, and Medium Enterprises sector, FM Sitharaman has raised the turnover and investment limits for MSME classification in the 2025 budget by 2.5 and 2 times, respectively. This revision aims to provide greater opportunities for MSMEs to scale up and contribute more significantly to the economy.
To support Micro Enterprises with a registration on the Udyam portal, the finance minister has launched the provision of customized credit cards having ₹5 lakh limit to be issued in the very first year. Also, a National Manufacturing Mission has been launched to support small, medium, and large industries, aimed at advancing the "Make in India" initiative.
“Viksit Bharat Budget 2025-26 has a 360-degree focus on manufacturing to empower entrepreneurs, MSMEs, and small businesses,” said PM Modi.
The government also announced the establishment of a unified platform called 'BharatTradeNet' (BTN) to streamline international trade by providing comprehensive trade documentation and financing solutions. To foster export in the country, FM Sitharaman has announced the establishment of an Export Promotion Mission, combining ministerial and sectoral targets, jointly driven by the Ministries of MSME, Commerce, and Finance.
A new “Fund of Funds for Startups” will be established with an expanded scope to support the growth of emerging businesses. The fund will receive a fresh contribution of ₹10,000 crore, aimed at providing startups with better financial backing to establish themselves and be part of driving economic growth. Also, a “Deep Tech Fund of Funds” is being considered to foster the next generation of startups.
Under the PM Research Fellowship scheme, 10,000 fellowships will provide financial support for technological research in tech institutions - IITs and IISc with enhanced financial support.
Also, infrastructure ministries will develop a three-year project pipeline under the Public-Private Partnership (PPP) model, with states also encouraged to participate. To support the states in infrastructure, another proposal came as an outlay of ₹1.5 lakh crore to offer interest-free loans for 50 years to states for incentives for reforms and capital expenditure.
Another new initiative introduced in the new budget is the “Scheme for first-time entrepreneurs” offering term loans of up to ₹2 crore over the next five years for 5 lakh first-time “women, Scheduled Castes, and Scheduled Tribes” entrepreneurs.
The finance minister also announced Asset Monetization Plan for 2025-30, aiming to reinvest ₹10 lakh crore into new projects. To support the development of the Food Processing sector in Bihar, the government announced that a National Institute for Food Technology, Entrepreneurship, and Management will be established in the state.
Given boosting investment in innovation, the minister allocated ₹20,000 crore to bolster the Research, Development and Innovation initiative driven by the private sector in the July budget. A national framework will be developed to guide states in fostering Global Capability Centres (GCCs) in emerging tier-2 cities. In addition, a National Geospatial Mission has been announced to build essential geospatial infrastructure and data resources.
Whereas, to boost the quality, productivity, and competitiveness of India’s footwear and leather industry, Sitharaman announced a focused product scheme to generate employment opportunities for 22 lakh Indians. Plus, she promised to generate ₹4 lakh crore turnover and over ₹1.1 lakh crore exports in this sector. The finance minister also disclosed a scheme to transform India into a global hub for creating unique, innovative, high-quality, and sustainable toys. In another significant announcement in the food sector, a second gene bank housing 10 lakh germplasm lines will be established to ensure future food and nutritional security.
The recent budget announcements are focused on fostering India’s growth prospects through strategic initiatives including MSME support, manufacturing, food processing, infrastructure, and technology. These measures aim to boost innovation, strengthen underserved sectors, and uplift India’s global competitiveness over the next few years.
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