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Informist, Saturday, Feb. 1, 2025

--BUDGET: To facilitate technological upgradation of MSMEs

--BUDGET: To enhance investment, turnover limits for MSMEs by up to 2.5 times

--BUDGET: To enhance investment, turnover limits for MSMEs

--BUDGET: MSMEs to be second engine of growth for Viksit Bharat 

NEW DELHI – To help India's micro, small, and medium enterprises improve access to capital, the investment limit for these enterprises will be enhanced to 2.5 times the current limit, Finance Minister Nirmala Sitharaman said Saturday while presenting the Budget for the financial year 2025-26 (Apr-Mar) in the Lok Sabha. The turnover limit for micro, small, and medium enterprises will also be doubled, the finance minister said. These enhanced limits will not only give these enterprises confidence, but will also help them to grow and generate employment, she said. 

Currently, companies are classified as micro enterprises if their investment in plant and machinery or equipment does not surpass INR 10 million and if their annual turnover is not more than INR 50 million. For small businesses, the investment should not be more than INR 100 million and the annual turnover should not exceed INR 500 million. To be classified as a medium business, the investment should not surpass INR 500 million and the annual turnover should not be more than INR 2.50 billion. These investment limits will now be raised by 2.5 times and the turnover limits will be doubled.

India's micro, small, and medium enterprises will be the second engine of growth for 'Viksit Bharat', Sitharaman said. "Currently over 10 million registered MSMEs, employing 75 million people and generating 36% of our manufacturing, have come together to position India as a global manufacturing hub with quality products," she said.

Micro, small, and medium enterprises are responsible for 45% of India's exports. The Budget also proposes to double the credit guarantee cover for these enterprises to INR 100 million from INR 50 million, which will lead to an additional cover of INR 1.50 trillion for the next five years.  End

Reported by Kabir Sharma

Edited by Rajeev Pai

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