Sat Feb 01 21:12:38 UTC 2025: ## Union Budget 2025: MSME Investment Limits Doubled, Credit Guarantee Enhanced

**New Delhi, Feb 2, 2025** – Finance Minister Nirmala Sitharaman announced a significant boost for Micro, Small, and Medium Enterprises (MSMEs) in the Union Budget 2025 presented late Saturday. The investment limit for MSME classification will be increased 2.5 times, while the turnover limit will be doubled. This move aims to support the sector, which contributes 45% of India’s exports and employs nearly 7.5 crore people across over one crore registered MSMEs.

The Budget also includes an enhancement of the credit guarantee cover for MSMEs from ₹5 crore to ₹10 crore. This, coupled with existing government credit support initiatives, is expected to significantly improve access to finance for these businesses.

Shridhar Kamath, Partner and Engineering & Industrial Products Industry Leader at Grant Thornton Bharat, welcomed the announcement, highlighting the increased credit support. However, he noted the need for further details regarding support for technology adoption and productivity improvements to ensure long-term competitiveness. Kamath also pointed out that the focus on sectors like food processing, agriculture, and clean tech manufacturing will create significant opportunities for MSMEs supplying equipment to these industries. The complete details of the MSME support measures are expected to be released in Annexure D of the budget documents.

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