Initiatives for MSMEs by Government are welcome, but a more targeted policy is needed

The 9th Global MSME Day was observed across various parts of India on 27th June.

- Kishore Kumar Biswas

Reports indicate that discussions largely focused on three key areas: access to finance, product marketing, and technological challenges. The critical role of MSMEs in India's economy was repeatedly highlighted. MSMEs are recognized as the second-largest source of employment in India after agriculture. According to the Press Information Bureau, India has 5.93 crore registered MSMEs, employing over 25 crore people. These enterprises contribute significantly to the country's economic output, accounting for 45.73% of India's total exports in 2023-24.

Key Announcements for MSMEs in the Union Budget 2025-26

Revised Classification Criteria — The investment and turnover limits for MSME classification have been raised by 2.5 times and 2 times respectively. Improved Credit Access — Measures have been introduced to enhance credit availability for MSMEs. Credit Cards for Micro Enterprises — A new credit facility of up to ₹5 lakh has been introduced for micro enterprises registered on the Udyam portal. Support for Startups and First-Time Entrepreneurs — Special provisions have been made to encourage new entrants into the sector.