The recently released Union Budget for 2025 has sparked positive reactions from various stakeholders in the MSME sector. The budget includes measures such as increased credit guarantee cover and customised credit cards for small businesses, which are seen as crucial steps in promoting financial inclusion and aiding India's position as a global manufacturing hub. However, experts emphasize the importance of simplifying access to these schemes and ensuring efficient disbursement of funds. The budget also focuses on building export competitiveness through digital trade networks and strong buyer-supplier ecosystems.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman revealed plans to increase credit access for MSMEs. This move will not only support the growth of these enterprises but also result in more jobs for the youth. The government has also recognized the significant contribution of MSMEs to India's exports and manufacturing sector.
Finance Minister Nirmala Sitharaman has announced ambitious plans to strengthen India's micro, small, and medium enterprises (MSMEs). With a focus on supporting these businesses with technological upgradation, increased investment and turnover limits, and enhanced credit guarantee cover, the government aims to empower MSMEs to grow and create more employment opportunities. Additionally, a new fund of funds will be set up to provide further support to startups, and a new scheme will be launched to provide term loans to women, Scheduled Castes, and Scheduled Tribes entrepreneurs.
Finance Minister Nirmala Sitharaman announced key measures for the MSME (micro, small, and medium enterprises) sector in the Union Budget 2025. The investment limit for MSME classification will be increased to 2.5 times and the turnover limit will be doubled, leading to growth and innovation in the sector. The government will also provide a credit guarantee cover up to Rs 10 crore and introduce customized credit cards for micro enterprises. This focus on the MSME sector, which contributes 36% of India's manufacturing and employs 7.5 crore people, is expected to boost the country's economy and create more job opportunities for the youth.
Finance Minister Nirmala Sitharaman announced several significant changes for the micro, small, and medium enterprises (MSMEs) sector in the Union Budget 2025 presentation. This includes customised credit cards with a limit of Rs 5 lakh, increased credit guarantee cover and a term loan of up to Rs 20 crore for well-run export-oriented MSMEs. This move aims to boost manufacturing in the country and improve credit access for MSMEs. To stay updated on the latest business news and stock market updates, check out Zee Business and subscribe to their YouTube channel.
Chennai-based tech solutions company, Zoho Corp. announced a 31% growth in customers in India and their plans to venture into semiconductor manufacturing at Zoholics India. They also launched Vikra, a seller app on the Open Network for Digital Commerce (ONDC), to empower MSMEs in India and introduced Zoho IoT, a low-code platform for IoT solutions. Zoho's CEO, Sridhar Vembu, emphasized their commitment to innovation and enhancing India's technological self-sufficiency through these initiatives.
The Finance Ministry is considering modifying a new rule which requires timely payments to be made to micro, small, and medium enterprises (MSMEs) within 45 days. The new rule is set to take effect on April 1, but some businesses are requesting for a deferment or extension of the deadline due to concerns over compliance and potential impact on their relationships with suppliers and buyers. The government is reviewing the industry's request and aims to strike a balance between improving the financial health of MSMEs and minimizing compliance burdens. Meanwhile, the Confederation of All India Traders (CAIT) has proposed a one-year postponement of its implementation to allow traders sufficient time to prepare and comply with the law smoothly.
The India SME Forum has launched an ambitious initiative to train and facilitate 200,000 first-time MSME exporters by providing them with knowledge and resources on exporting potential, international regulations, and trade finance. This initiative is in partnership with UPS and ICICI Bank and is aimed at promoting import substitution and navigating the international market landscape for MSMEs. The launch event, held at a regional summit in Bengaluru, featured expert talks and networking opportunities for over 200 MSMEs and aspiring exporters.
The Indian government has announced the extension of healthcare coverage to ASHA and anganwadi workers under the Ayushman Bharat Pradhan Mantri-Jan Arogya Yojana (AB-PMJAY). This publicly funded health insurance scheme is the largest in the world and provides coverage for secondary and tertiary care hospitalization up to Rs 5 lakh per family per year. With a current coverage of 55 crore people, the government aims to provide timely and adequate finance to MSMEs, as announced by Finance Minister Nirmala Sitharaman during the interim Budget. Follow Zee Biz for live updates on Budget 2024.
MSME Secretary Subhas Chandra Lal Das shared the government's plans to boost the productivity and efficiency of MSMEs during a conference in Gandhinagar on Friday. The focus is on helping micro units become medium-sized enterprises in order to drive overall economic growth.