Budget 2025-26: MSME investment and turnover limits raised 2.5 and 2 times
On 1 February 2025, in Parliament in New Delhi, the Union Budget 2025-26 raised the investment and turnover limits for classifying all MSMEs to 2.5 and 2 times respectively.
Summary
On 1 February 2025, in Parliament in New Delhi, the Union Budget 2025-26 called MSMEs the second engine of growth, noting they account for 45% of exports. The investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. Credit guarantee cover for micro and small enterprises rises from ₹5 crore to ₹10 crore. Customised credit cards with a ₹5 lakh limit will be given to micro enterprises registered on the Udyam portal, with 10 lakh cards in the first year. A new scheme will give term loans up to ₹2 crore over the next 5 years to 5 lakh women, Scheduled Caste and Scheduled Tribe first-time entrepreneurs. A National Manufacturing Mission will cover small, medium and large industries and support clean-tech manufacturing.
Key facts
- Date / place
- 1 Feb 2025, Parliament, New Delhi
- Classification limits
- Investment 2.5x, turnover 2x
- Credit guarantee (micro and small)
- ₹5 crore to ₹10 crore
- Credit cards
- ₹5 lakh limit; 10 lakh cards in year 1 (Udyam micro enterprises)
- First-time entrepreneurs
- Loans up to ₹2 crore for 5 lakh women, SC and ST entrepreneurs
- Share of exports
- MSMEs: 45%
- New mission
- National Manufacturing Mission
Practice MCQs 2 questions
By how many times did the Union Budget 2025-26 enhance the investment limit for classification of all MSMEs?
Show answer
Correct answer: B — 2.5 times
PIB (1 Feb 2025): investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.
The Union Budget 2025-26 enhanced the credit guarantee cover for micro and small enterprises from ₹5 crore to:
Show answer
Correct answer: C — ₹10 crore
PIB (1 Feb 2025): credit guarantee cover for micro and small enterprises enhanced from ₹5 crore to ₹10 crore.