Union Budget 2025-26: MSME Leaders Back Investment Limit Hike, Call E-Shram Expansion Crucial

Date:

Trending

- Advertisement -

The MSME sector has responded positively to the Union Budget 2025-26, with experts highlighting the impact of increased investment and turnover limits. Industry leaders believe the government’s decision will enable small businesses to expand operations, contribute more to manufacturing and exports, and boost overall economic activity. Meanwhile, the expansion of the E-Shram scheme is being recognized as a step toward improving social security and upskilling opportunities for gig workers in a rapidly evolving job market.

Read the Union budget reactions from MSMEs sector in detail:

Eswara Rao Nandam, CEO and Founder, Polymatech Electronics

The Government of India’s commitment to empowering MSMEs and driving technological upgradation is a commendable step towards positioning India as a global manufacturing hub. The enhanced credit facilities and increased investment and turnover limits for MSMEs will provide significant support for businesses, helping them scale efficiently and foster innovation. These initiatives will undoubtedly boost India’s export potential and drive growth in sectors such as opto-semiconductors, 5G, and LED lighting solutions.

- Advertisement -

K V Srinivasan, Executive Director and CEO, Profectus Capital Private Limited

The budget has provided a significant boost to the MSME sector by significantly raising the thresholds for capital investment and turnover criteria for classification as Micro, Small, or Medium enterprises. Combined with the enhanced credit guarantee scheme, this move is expected to drive increased capital investment.

This would help MSMEs to modernize and expand their operations. Improved credit flow for startups is also a very welcome move. With the personal tax burden also coming down sharply, the increased consumption power should also help increase the overall demand for goods and services from MSMEs.

- Advertisement -

Sumit Bhatia, Co-founder, Aksum Trademark Pvt

The Government’s decision to increase investment and turnover limits for MSMEs by 2.5x and 2x, respectively, is a welcome move that will enable businesses to scale, innovate, and attract investments. Additionally, the enhanced credit guarantee cover under CGTMSE will provide easier access to formal credit, helping MSMEs grow and modernize.

At Aksum, we believe these reforms will strengthen India’s MSME sector, boost job creation, and drive economic growth. We look forward to leveraging these benefits to expand and innovate.

Jigar Kirtibhai Patel, Managing Director, G3+ Fashion

The Union Budget 2025’s forward-looking perspective to support Indian MSMEs is a commendable initiative as these businesses account for over 45% of the country’s total exports. The budget positions Indian MSMEs with enhanced scalability prospects, technological upgradation, capital accessibility, investment, and turnover growth — contributing towards their long-term success.

As MSMEs grow, they will also provide millions of new employment opportunities for Indian youth, directly impacting India’s per capita GDP going forward, helping to meet the country’s target to become a developed nation by 2047.

Mukul Goyal, Co-Founder, Stratefix Consulting

The Union Budget 2025 has rightly emphasized the pivotal role of MSMEs in India’s economic landscape. With over one crore registered MSMEs contributing approximately 36% to our manufacturing output and 45% to exports, their significance cannot be overstated. The government’s decision to enhance the investment and turnover thresholds for MSME classification is a commendable move. This adjustment will enable more enterprises to avail of MSME benefits, fostering growth and competitiveness.

Additionally, the increase in credit guarantee cover for micro-enterprises from ₹5 crore to ₹10 crore is a significant step. This initiative is expected to inject an additional ₹1.5 lakh crore in credit over the next five years, empowering small businesses to invest in innovation and expansion. However, while these measures are promising, it is crucial to address the persistent challenges that MSMEs face. Access to timely and affordable credit remains a hurdle for many small businesses. Streamlining the loan disbursement process and reducing bureaucratic red tape is essential to ensure that the intended benefits reach the grassroots level.

Furthermore, the emphasis on digitization and technology adoption is a welcome move. Encouraging MSMEs to integrate digital tools can enhance operational efficiency and open new market avenues. Providing incentives for technology adoption and digital literacy programs will be instrumental in this transition.

Maxson Lewis, Founder and CEO of Magenta Mobility

The Union Budget 2025 takes a big leap toward strengthening India’s economy while addressing the real challenges faced by SMEs and gig workers. MSMEs have long been the backbone of our EV industry, and this budget recognizes their role by offering targeted incentives, skill development programs, and infrastructure support—giving them the tools they need to scale and innovate.

At the same time, the expansion of the E-Shram scheme is a much-needed win for gig workers, ensuring they have access to social security, fair wages, and better upskilling opportunities. In today’s digital-driven world, these measures go a long way in creating a more inclusive workforce.

What’s particularly exciting is the boost for manufacturing—especially in electronics and EV battery production—along with fresh investment incentives for startups. By focusing on clean energy, self-reliance, and innovation, this budget isn’t just about numbers. It’s about empowering businesses, workers, and entrepreneurs to build a more sustainable and globally competitive India.

Ratish Pandey, Business Coach & Founder, Ethique Advisory

The Hon’ble Finance Minister’s budget brings much-needed attention to MSMEs, marking a step in the right direction for small and medium businesses.

A key highlight is the revision of limits for Micro, Small, and Medium Enterprises in terms of both sales and investments, creating new growth opportunities. Increased access to credit will strengthen MSMEs, helping them navigate market volatility more effectively. The introduction of term loans for well-performing exporters is another welcome move that will boost India’s export competitiveness.

Recognizing the shift towards a digital economy, the introduction of custom credit cards for MSMEs is a game-changing initiative that will streamline financial transactions and enhance digital adoption.

The continued focus on Alternative Investment Funds (AIFs) has yielded positive results, and this year’s ₹10,000 crore allocation for startups is a significant step toward supporting innovation and ensuring access to much-needed funding.

While these measures set a promising tone, the success of these initiatives will depend on their execution. Nonetheless, the budget reflects a strong intent to foster MSME growth and startup innovation, paving the way for a more resilient business ecosystem.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Ethnic Wear Brand Alaya By Stage3 Raises Seed Funding Led by LC Nueva AIF

Gurugram-based Alaya By Stage3, a modern Indian wear brand operated by Cosmo Brands, has raised an undisclosed seed funding round led by LC Nueva...

Refurbished Electronics Platform Grest Secures FDI from Japan’s ICMG in Pre-Series A Round

Grest, an India-based premium refurbished electronics platform, has secured foreign direct investment from ICMG as part of its ongoing undisclosed Pre-Series A funding round, marking its first overseas investment. The development comes as India’s refurbished electronics market continues to formalise, with industry estimates pointing to...

Random video chat: what it is, how it works, and why people use it

In an era where connecting with others online has become part of everyday life,...

The IoT Platform Market Just Consolidated: Smart Integrators Are Looking Elsewhere

Three platforms changed owners in 15 months. Your stack didn't change. Your risk profile did.

Meta Platforms, Broadcom Partners to Co-Develop Multi-Gen Silicon AI Chips

Facebook parent Meta Platforms (NASDAQ: META) has expanded its partnership with Broadcom to co-develop...

Practo Names Srijesh Kumar as Global CPTO

India-based online doctor consulting platform, Practo has announced the appointment of Srijesh Kumar as...

Matrix Geo Solutions Wins ₹5.14 Crore Narmada Survey Project from MPSEDC

Matrix Geo Solutions Limited has received a Letter of Acceptance (LoA) from Madhya Pradesh...

Why Reliability and Security Are the New Differentiators in Enterprise Tech

For years, enterprises competed on features, scale, and speed. Today, the real differentiator is...

How Home-Based Healthcare is Improving Medical Accessibility Across India

The Indian health care industry has seen considerable transformation in recent times, primarily due to changes in patient demand and an increasing need for...

Mytek Launches Reverse Auction Model, Reports ₹48.29 Crore Revenue

Mumbai-based commerce platform Mytek on Tuesday launched a reverse auction model, introducing a bidding-based...

Trump Accuses Iran of Breaching Ceasefire, Warns Over Strait of Hormuz Transit

The US President Donald Trump has accused Iran of failing to allow adequate oil...

VES College of Architecture’s Dr. Prof. Anand Achari on Preparing Students for Real Urban Challenges with AI and Design Thinking

Speaking with TechGraph, Principal of VES College of Architecture (VESCOA), Dr. Prof. Anand Achari,...

Cisco Appoints Pete Shimer to Board, Daniel Schulman to Step Down

Cisco Systems (NASDAQ:CSCO) has appointed Pete A. Shimer to its board of directors, while...

Cisco Director Pete Shimer Files Initial Ownership Disclosure with SEC

Cisco Systems (NASDAQ: CSCO) board member Pete A. Shimer has filed an initial statement of beneficial ownership with the U.S. Securities and Exchange Commission...

8B, PayU Partner to Enable UPI Payments for Indian Users Across Central Asia

Central Asian fintech infrastructure company 8B has partnered with PayU Payments to enable UPI and other Indian payment options for merchants across Central Asia, marking a step towards building a cross-border payments corridor between India and the region. Under the partnership, PayU’s APIs will be...

Cisco Report: Cybersecurity Remains Top Challenge as Industrial AI Adoption Expands

Cisco Systems (NASDAQ:CSCO) has released its latest State of Industrial AI Report, highlighting how...

Motilal Oswal Alternates leads $280 Mn Series E Round for KreditBee

India based digital lending platform KreditBee (KrazyBee Services PVT Ltd) has raised $280 million...

Evolving Practices in Industrial Operations and Infrastructure

Industrial operations and infrastructure continue to evolve as organizations adapt to new technologies, regulatory...

SatLeo Labs Raises $2.2 Mn Seed Round Led by Unicorn India Ventures

SatLeo Labs, a Gujarat-based space tech startup focused on capturing high-resolution thermal and visible...

How Graphics on Cars Can Boost Your Business

In today's competitive market, businesses are constantly looking for innovative ways to stand out...

How Modern Technology Enhances Efficiency and Performance of Residential HVAC Systems

Modern technology has revolutionized many aspects of our daily lives, and residential HVAC systems...

Vanguard Reports Stake Below 5% in Google’s Alphabet

The Vanguard Group has reported that it now holds less than a 5 percent...

Vanguard Group Reports Ownership Below 5% in Apple Following Internal Realignment

The Vanguard Group has reported that it now holds less than a 5% stake...

NIELIT, SKD University Sign MoU to Expand AI, Cyber Security and Data Science Education in Rajasthan

The National Institute of Electronics and Information Technology (NIELIT) and Shri Khushal Das University...

VES College of Architecture’s Dr. Prof. Anand Achari on Preparing Students for Real Urban Challenges with AI and Design Thinking

Speaking with TechGraph, Principal of VES College of Architecture (VESCOA), Dr. Prof. Anand Achari,...

Cisco Appoints Pete Shimer as its board of directors

American multinational technology conglomerate, Cisco Inc (NASDAQ: CSCO) on Tuesday announced the appointment of...

Cambodia Installs Statue Honouring Mine Detection Rat Magawa

Magawa, a landmine detecting rat who was awarded a gold medal for his service,...

ASLI Appoints Rajagopal G as Chairman for 2026–28 Term

Association of Senior Living India (ASLI) has announced the appointment of Rajagopal G as...

realme Launches realme 16 5G in India with Dual 50MP Cameras, 7000mAh Battery

With a bid to strengthen its position in the mid range segment, realme has...

Cisco Appoints Pete Shimer to Board, Daniel Schulman to Step Down

Cisco Systems (NASDAQ:CSCO) has appointed Pete A. Shimer to its board of directors, while...

Vanguard Group Reports Ownership Below 5% in Apple Following Internal Realignment

The Vanguard Group has reported that it now holds less than a 5% stake...

Concord Control Systems Secures INR 84 Cr Order From Indian Railways For Loco Wireless Control Systems

Concord Control Systems Limited (BSE: CNCRD), a manufacturer of embedded electronic systems and a...

NIELIT, SKD University Sign MoU to Expand AI, Cyber Security and Data Science Education in Rajasthan

The National Institute of Electronics and Information Technology (NIELIT) and Shri Khushal Das University...