In her Budget speech today, Nirmala Sitharaman delivered a significant boost to the MSME sector, crucial for India’s economic growth. Here are the key relief measures announced for the sector.
Union Finance Minister Nirmala Sitharaman on Tuesday provided a significant boost to micro, small, and medium enterprises (MSMEs) in her Budget speech. She announced an increase in the MUDRA loan limit for MSMEs from ₹10 lakh to ₹20 lakh for those with a successful repayment history.
Additionally, Sitharaman introduced a new credit guarantee scheme for manufacturing MSMEs, offering up to ₹100 crore in guarantee cover. This scheme allows MSMEs to secure loans without collateral and includes provisions for machinery purchases.
Sitharaman also outlined a new arrangement to ensure continued bank credit during borrower stress and a package to support technology financing for MSMEs.
Abhishek Gupta, Founder and Managing Partner at Pierag LLP Consulting, encouraged MSMEs to invest in high-quality machinery, noting the scheme’s potential to enhance business growth and sustainability.
The Finance Minister announced financial support for 50 multi-product food irradiation units and emphasized the Centre’s focus on MSMEs alongside employment and skilling. She also highlighted a reduction in the turnover threshold for mandatory TReDS platform onboarding from ₹500 crore to ₹250 crore, aimed at aiding MSMEs.
New e-commerce hubs will be established through public-private partnerships to help MSMEs and artisans reach international markets. An allocation of ₹2.66 lakh crore was made for rural development, and SIDBI will open 24 new branches to support MSME clusters. The government will also launch the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) saturation drive.
Sameer Jain, Managing Director at Primus Partners, emphasized the need for additional support for the green transformation of MSMEs, including easier access to climate financing. Deepthi Alexander, Partner at BDO India, welcomed the budget’s focus on manufacturing, services, and e-commerce, anticipating positive impacts on revenue, employment, and wages.
