CosmicTaco

Union Budget 2025: Major Boost for MSMEs

CosmicTaco · 2025-02-01T15:25:34.597840+05:30

- Union Finance Minister Nirmala Sitharaman announced enhancements in credit guarantee cover for MSMEs, doubling it from ₹5 crore to ₹10 crore, aiming to generate an additional ₹1.5 lakh crore credit over the next five years. - Customized credit cards with a ₹5 lakh limit will be issued to 10 lakh small businesses registered on the Udyam portal, boosting transparency and reducing paperwork. - Investment and turnover limits for MSME classification will be increased by 2.5 and 2 times respectively, expected to boost confidence and job creation in the sector. Source: [Mint](https://www.livemint.com/news/union-budget-2025-credit-guarantee-cover-for-msmes-to-be-enhanced-says-fm-nirmala-sitharaman-11738395054084.html), [The Economic Times](https://economictimes.indiatimes.com/news/economy/policy/msmes-get-budget-push-boosting-exports-improving-credit-access-creating-women-entrepreneurs/articleshow/117821510.cms), [Moneycontrol](https://www.moneycontrol.com/budget/union-budget-2025-credit-guarantee-cover-for-msmes-to-be-enhanced-says-nirmala-sitharaman-videoshow-12926891.html), [Times Now News](https://www.timesnownews.com/india/investment-and-turnover-limits-for-msmes-to-be-increased-by-2-5x-and-2x-finance-minister-nirmala-sitharaman-article-117817350), [Business News India](https://www.businesstoday.in/union-budget/video/modinomics2025-unlocking-msme-potential-credit-expansion-and-limit-enhancements-for-growth-462947-2025-02-01)

Union Finance Minister Nirmala Sitharaman announced enhancements in credit guarantee cover for MSMEs, doubling it from ₹5 crore to ₹10 crore, aiming to generate an additional ₹1.5 lakh crore credit over the next five years.
Customized credit cards with a ₹5 lakh limit will be issued to 10 lakh small businesses registered on the Udyam portal, boosting transparency and reducing paperwork.
Investment and turnover limits for MSME classification will be increased by 2.5 and 2 times respectively, expected to boost confidence and job creation in the sector.

Source: Mint, The Economic Times, Moneycontrol, Times Now News, Business News India