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  • Budget 2025 : ‘MSMEs Are Key To India’s Global Manufacturing Push,’ Says Nirmala Sitharaman, Announcing Enhanced Credit Guarantees And New Startup Fund

Budget 2025 : ‘MSMEs Are Key To India’s Global Manufacturing Push,’ Says Nirmala Sitharaman, Announcing Enhanced Credit Guarantees And New Startup Fund

In the Union Budget 2025 presented today, Finance Minister Nirmala Sitharaman announced a major transformation for India Post, aiming to turn the organization into a large public logistics entity.

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Budget 2025 : ‘MSMEs Are Key To India’s Global Manufacturing Push,’ Says Nirmala Sitharaman, Announcing Enhanced Credit Guarantees And New Startup Fund


In her presentation of the Union Budget 2025, Finance Minister Nirmala Sitharaman unveiled several crucial initiatives aimed at fostering entrepreneurship, supporting micro, small, and medium enterprises (MSMEs), and transforming India Post into a major player in public logistics.

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New ‘Fund of Funds for Startups’ to Boost Entrepreneurship

In a move to strengthen India’s startup ecosystem, Finance Minister Nirmala Sitharaman announced the establishment of a new ‘Fund of Funds for Startups’, designed to boost entrepreneurship across the nation.

The government will contribute an additional Rs. 10,000 crore to the fund, supplementing the Rs. 10,000 crore already allocated. This fund aims to empower a new generation of entrepreneurs, providing crucial financial support to startups in various stages of development.

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Moreover, a new scheme will be introduced to assist 5 lakh women, Scheduled Castes, and Scheduled Tribes entrepreneurs, specifically targeting first-time business owners in these communities. This initiative reflects the government’s commitment to inclusive growth and equal opportunities for all segments of society.

Credit Guarantee Cover for MSMEs to Be Enhanced

Micro, Small, and Medium Enterprises (MSMEs) continue to be a cornerstone of India’s economy. Finance Minister Sitharaman emphasized that MSMEs are “the second engine of the Union Budget 2025,” contributing significantly to manufacturing and exports. To further support their growth, the credit guarantee cover for MSMEs will be significantly enhanced.

Currently, there are over one crore registered MSMEs in India, which generate 37% of the country’s manufacturing output and contribute 45% of exports. To help these businesses expand, the government will increase the investment and turnover limits for MSME classification, raising them by 2.5 times and two times, respectively. This measure is expected to help MSMEs grow, increase employment, and position India as a global manufacturing hub.

India Post Set to Transform into a Public Logistics Giant

A major announcement in the Union Budget 2025 is the transformation of India Post into a large public logistics organization. This move is designed to capitalize on India Post’s vast infrastructure and network to drive innovation and efficiency in the logistics sector. By leveraging its widespread presence across the country, India Post will be positioned to handle a greater share of logistics services, benefiting both businesses and consumers.

The announcements made in Budget 2025 underscore the government’s focus on empowering entrepreneurs, enhancing the capabilities of MSMEs, and positioning India as a logistics hub. With these reforms, the government aims to unlock the potential of startups and MSMEs, while fostering inclusive growth for women, marginalized communities, and all regions of India.

Read More : Budget 2025: Madhya Pradesh Seeks Rs 17,000 Crore From Centre, Holds High Expectations From Union Budget

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Budget 2025

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