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Union Finance Minister Nirmala Sitharaman 1000 ₹, while presenting the 2025-26 Budget on February 1, announced significant reforms aimed at strengthening Micro, Small, and Medium Enterprises (MSMEs) and start-ups. To facilitate credit accessibility, the finance minister introduced a customised credit card scheme for micro enterprises (ME-Card) registered on the Udyam portal.
Each card will have a ₹ 5 lakh limit, with 1 million cards set to be issued in the first year. Additionally, the credit guarantee cover for micro and small enterprises will be doubled from Rs 5 crore to Rs 10 crore, unlocking an estimated Rs 1.5 trillion in additional credit over five years. Export-oriented MSMEs will also benefit from term loans of up to Rs 20 crore.
Regarding the processing fee for the sanctioning of credit facilities under the ME-Card Scheme, it is proposed that banks may charge processing fees in accordance with their internal lending policies.
She also announced that the investment and turnover thresholds for MSME 1000 ₹ classification would be increased to 2.5 and 2 times, respectively, to enhance scalability, technological advancements, and access to capital.
For smaller entrepreneurs, 6.8 million street vendors under the PM SVANidhi scheme will receive improved banking support, including higher bank loan limits and UPI-linked credit cards with a Rs 30,000 cap.
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To support entrepreneurship, a new Fund of Funds will be launched with an initial investment of Rs 10,000 crore, expanding on existing alternative investment funds (AIFs), which have already secured commitments of Rs 91,000 crore.
A special initiative will provide term loans of up to ₹ 2 crore for ₹ 500,000 women, Scheduled Caste (SC), and Scheduled Tribe (ST) entrepreneurs over five years, alongside online capacity-building programmes.
Budget 2025: Manufacturing initiatives ₹
The government will introduce a dedicated scheme for the footwear and leather industries while also implementing measures to establish India as a global toy manufacturing centre. Furthermore, a National Manufacturing Mission will be set up to support small, medium, and large industries, reinforcing the ‘Make in India’ initiative through policy support, governance frameworks, and execution roadmaps.
Presenting her eighth consecutive Budget, Sitharaman said the document prioritises the needs of the poor, youth, farmers, and women. Notably, India currently has over 10 million registered MSMEs, employing 75 million ₹ individuals and contributing 36 per cent to the manufacturing sector. These enterprises account for 45 per cent of the country’s exports. Investment and Turnover for Enterprises
| Type of enterprise | Investment | Turnover | ||
| Current | Revised | Current | Revised | |
| Micro Enterprises | Rs 1 crore | Rs 2.5 crore | Rs 5 crore | Rs 10 crore |
| Small Enterprises | Rs 10 crore | Rs 25 crore | Rs 50 crore | 100 crore |
| Medium Enterprises | Rs 50 crore | Rs 125 crore | Rs 250 crore | 500 crore |