#Modinomics2025 | Unlocking MSME Potential: Credit Expansion And Limit Enhancements For Growth

In a bold move to boost India's MSME sector, Finance Minister Nirmala Sitharaman announces major reforms aimed at empowering micro, small, and medium enterprises (MSMEs) to drive economic growth. With over 5.7 crore MSMEs, this sector plays a pivotal role in manufacturing, job creation, and economic development. The government is enhancing investment and turnover limits for MSMEs, doubling them to stimulate growth and improve operational efficiencies. Additionally, credit guarantee covers for micro and small enterprises will rise from ₹5 crore to ₹10 crore, unlocking an additional ₹1.5 lakh crore in credit over the next five years. For startups, the credit guarantee limit will also be increased from ₹10 crore to ₹20 crore, with a reduced guarantee fee of just 1% for loans in 27 key sectors vital for Atmanirbhar Bharat. This strategic focus aims to accelerate MSME growth, foster innovation, and generate significant employment opportunities for India’s youth.