Budget 2025: MSME definition revision a ‘good decision,’ says India Inc; seeks more ‘aha moments’ for ease of doing business
Budget 2025-26, announced by Finance Minister Nirmala Sitharaman on February 1, 2025, introduced a host of measures aimed at supporting India Inc., with an emphasis on tax reforms, export promotion, and ease of doing business being paramount. A revision in MSME classification, steps to boost India’s share in global trade, and improving the regulatory landscape got notable mentions, among other key highlights.
Delhi Elections Live
Tax calculator
Announcing a series of measures to strengthen the MSME sector—often referred to as the backbone of the economy—the Budget acknowledged the sector’s vital role as one of the key engines for India’s growth, along with agriculture, investments, and exports.
“To help MSMEs scale operations and access better resources, the investment and turnover limits for classification have been increased by 2.5 times and 2 times, respectively. This is expected to improve efficiency, technological adoption, and employment generation,” a post-Budget PIB release stated.
Rationalisation of MSME Definition
Speaking to ET Digital in an in-depth analysis of the budgetary announcements, Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME), discusses how these measures will benefit the sector. “From 2020 to 2024, the raw material prices have increased tremendously. Take the example of gold, which has seen a rise of over 30%. Similarly, this has been the case for steel and copper. So, all these small enterprises became medium enterprises, and they were
