Sat Feb 01 06:30:18 UTC 2025: ## Government Announces Major Boost for Indian MSMEs

**New Delhi, February 1, 2025** – Finance Minister Nirmala Sitharaman today unveiled a significant package aimed at boosting India’s Micro, Small, and Medium Enterprises (MSMEs), creating jobs, and furthering the nation’s economic growth. The measures, part of the Union Budget 2025, focus on improving access to credit and enhancing the sector’s overall efficiency.

Key highlights of the announcement include:

* **Increased Investment and Turnover Limits:** The investment and turnover limits for MSME classification will be raised by 2.5 times and doubled, respectively, allowing more businesses to qualify for MSME benefits.
* **Enhanced Credit Guarantee Cover:** The credit guarantee cover for micro and small enterprises will increase to ₹10 crore (from ₹5 crore), while startups will see their cover rise to ₹20 crore (from ₹10 crore). A reduced guarantee fee of 1% will apply to loans in 27 focus sectors crucial for “Aatmanirbhar Bharat” (Self-Reliant India). An additional ₹1.5 lakh crore in credit will be made available over the next five years.
* **Customised Credit Cards:** The government will launch customized credit cards for micro enterprises registered on the Udyam Portal, with a credit limit of ₹5 lakh. At least 10 lakh cards are expected to be issued in the first year.
* **Targeted Term Loans:** A ₹2 crore term loan will be offered to 5 lakh first-time women, Scheduled Caste (SC), and Scheduled Tribe (ST) entrepreneurs.

The Minister emphasized the importance of MSMEs to the Indian economy, highlighting that they account for 45% of India’s exports and employ 7.5 crore people, generating 36% of India’s manufacturing output. The government’s aim is to support these enterprises to become more competitive and efficient, creating further jobs, particularly among young people.

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