New Delhi: Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 today, marking her eighth consecutive budget. Among the key highlights, the Finance Minister announced significant financial support for startups and small businesses, providing them with crucial resources to expand and thrive.
Under the new budget provisions, the government has announced a ₹10,000 crore additional fund for startups, aimed at promoting innovation and entrepreneurship across the country. This will include ₹10 crore in loans for MSMEs and ₹20 crore for startups, enabling them to access capital for growth. In addition, new businesses will be eligible for loans of up to ₹2 crore over the next five years to ensure their financial stability and scaling.
To support micro and small entrepreneurs, the government will also introduce a ₹5 lakh credit card for small business owners, making it easier for them to manage day-to-day business expenses.
Finance Minister Sitharaman also announced an increase in the MSME Credit Guarantee Scheme, which will now cover up to ₹10 crore for micro enterprises, double the previous limit of ₹5 crore. This expansion is expected to provide an additional ₹1.5 lakh crore in credit over the next five years, ensuring that small businesses can access the financial resources they need to grow and create jobs. Sitharaman emphasized that MSMEs contribute 45% of the nation’s exports, underscoring the need to further boost credit access to these businesses.
Additionally, the government introduced a special incentive scheme for labor-intensive sectors, including the footwear and leather industries, aimed at generating 22 lakh new jobs in these sectors over the next few years. As part of its effort to make India a global leader in manufacturing, the government also announced plans to transform India into a global hub for the toy industry, which will enhance the country’s production capacity and exports.
The Budget 2025 proposals demonstrate the government’s continued focus on empowering small businesses and startups, helping them access financial resources and contributing to India’s economic growth and job creation in labor-intensive sectors.
