While explaining the rationale behind such a move, she said that this will give MSMEs the confidence to grow and create even more job opportunities for the youth. 
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While explaining the rationale behind such a move, she said that this will give MSMEs the confidence to grow and create even more job opportunities for the youth. Union Finance Minister Nirmala Sitharaman on Saturday turned Santa Claus for the MSME sector in India. Sitharaman said in her eighth Budget speech that the credit guarantee cover limits for the MSME sector will be enhanced.
For micro enterprises, the MSME credit guarantee cover will be doubled from ₹5 crore to ₹10 crore leading to additional ₹1.5 lakh crore credit in the next 5 years. Sitharaman said that customised credit cards with a limit of ₹5 lakh will be started for small businesses registered on the Udyam Portal.
Sitharaman said that these credit cards will be given to around 10 lakh businesses in the first year. She also mentioned that the investment limit for MSME classification to be made 2.5 times and the turnover limits for the MSME classification will also be doubled.
Revised investment and turnover limits for MSMEs
While explaining the rationale behind such a move, she said that this will give MSMEs the confidence to grow and create even more job opportunities for the youth. She mentioned in her speech that over 1 crore registered MSMEs employ more than 7.5 crore people.
The Union Minister also stated that MSMEs contribute to around 45 per cent of India's exports and roughly 36 per cent of our manufacturing. The announcements related to the MSME sector left experts ecstatic.
“Union Budget 2025 pays specific attention to MSME by enhancing threshold for qualification as MSME as well as improving credit facilities of MSMEs including specialised credit cards to be used for SMEs and setting up of new fund for investments in startups," Sandeep Chilana, Managing Partner CCLaw said.
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