The budget gives MSMEs a big boost to help make India self-reliant
Subscribe to enjoy similar stories. Micro, small and medium enterprises (MSMEs) are the backbone of India’s economic structure, contributing nearly 30% to gross domestic product (GDP), 45% to exports and generating employment for over 75 million people. Despite their crucial role, MSMEs have long grappled with financing bottlenecks, infrastructural gaps and slow technological adoption.
The 2025-26 budget takes a decisive step to address these structural challenges and fuel MSME growth in line with India’s self-reliance vision. Enhancing credit availability and financing mechanisms: In line with the government’s recognition of MSMEs as the ‘second engine’ of economic expansion, the 2025-26 budget introduces key reforms to enhance financial accessibility, technological adoption and market linkages. The government’s vision aligns with broader industry expectations and takes significant strides in bolstering the MSME sector, setting the stage for sustained growth and competitiveness.
While there is always room for further enhancements, the budget marks a decisive step in the right direction. It introduces an expansion in the classification criteria for MSMEs, raising investment and turnover limits by 2.5 and 2 times, respectively. This move aims to incentivize businesses to scale up without fear of losing MSME benefits.
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