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:

- Advertisement -

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

Closing India’s Employability Gap with Tech-First Hiring Models

India’s employability challenge is often framed as a skill gap problem. But that’s only half the story. The real gap lies in reach and engagement. As...

Vanguard Group Reports Nvidia Stock Below 5 Percent

The Vanguard Group has reported that it now holds less than a 5% stake in NVIDIA Crop (NASDAQ:NVDA), following an internal realignment of its business structure. The disclosure was made in a regulatory filing dated March 13, 2026, which showed that Vanguard no longer reports...

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,...

How NBBL’s New Technology Stack Is Transforming the Future of Payments

India’s digital payments ecosystem has reached a scale that very few countries in the...

NVIDIA CEO Jensen Huang Reports 437,908 Shares Disposal at $181.93 Each

Jensen Huang, President and CEO of Nvidia Corporation (NASDAQ:NVDA), has reported a series of...

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 critical electronic solutions company, has secured an order worth ₹84.68...

The Future of Shopping: How Apps Are Merging Beauty with Basics

Shopping in India is evolving very fast. Instead of opening different apps for different...

How Anganwadi’s Can Transform India’s Education Foundation

If you step into an Anganwadi on any given morning, what you’ll see is...

Business Structure for Modern Entrepreneurs: What No One Explains Clearly

Modern entrepreneurs often obsess over product-market fit while neglecting the structural bones of their...

Deeptech Startup Newtrace Secures $6.3 Mn in Pre-Series A Round

Bengaluru-based deeptech startup Newtrace has raised $6.3 million (INR 56.93 crore) in a pre-Series...

Mozark Snaps $40 Mn In Series B Round Led by IFC and RMB Capitalworks

Mozark, a Singapore-based company specializing in digital experience testing and measurement, has raised $40 million in a Series B round led by International Finance...

Role of Agentic AI in transforming the real estate landscape

The real estate industry involves a high-stakes ecosystem driven by shifting supply-demand dynamics, regulatory changes, and several other economic factors. Every stage from evaluating land to designing projects, projecting cash flows, managing construction, marketing properties, and supporting post-sales operations involves interdependent decisions that can...

How to Extend Vehicle Lifespan With Proper Maintenance

Extending the lifespan of your vehicle is not only cost-effective but also beneficial for...

Geospatial Intelligence Is Powering India’s Next Wave of Smart Infrastructure

Every day, nearly 500 families in India receive news that will change their lives...

Is India Ready for a Smart Treasury? A Look at Adoption Barriers and Opportunities

Across India, businesses hold thousands of crores in current accounts that earn no interest....

Fraud or Finance? How to Identify Trustworthy Digital Lending Platforms

Digital lending has changed how credit flows in India. According to the IBEF, fintech-led...

What Modern Enterprises Can Expect from CPaaS Platforms in 2026

Over the past two decades, enterprise communication technology has advanced rapidly. Yet the gap...

Choosing glass for perfume bottles? Watch for breakage and leaks

You want your perfume bottle to look great and arrive safely. That’s easiest when...

B2B Logistics platform Mojro Draws $3Mn for IAN Alpha Fund & Others

Bengaluru-based B2B logistics platform Mojro has raised $3 million in a Series A funding...

Peak XV Partners Closes $1.3 Bn in Fresh Capital to Back Startups Across India and APAC

Peak XV Partners (formerly Sequoia Capital India & SEA) has closed $1.3 billion in...

LTM partners with the Indian Institute of Creative Technologies to strengthen creative technology skilling

LTM, a Larsen & Toubro Group company, and the Indian Institute of Creative Technologies...

Business Structure for Modern Entrepreneurs: What No One Explains Clearly

Modern entrepreneurs often obsess over product-market fit while neglecting the structural bones of their...

Understanding Common Car Problems and How to Prevent Them

Keeping your vehicle in top condition requires more than just regular washing or occasional...

From Browsing to Buying: How Multi-Modal AI Is Turning Discovery Into Decision-Making

The digital journey, starting from discovery to decision, has been notably discontinuous through time....

From vineyard to bottle: How blockchain improves trust and sensing in the wine value chain

The wine sector faces increasing consumer demand for transparency, authenticity, and reliable information about...

Why India’s Next Cloud Boom Is Coming from Tier-2 Cities

Historically, the story of India's cloud adoption has been focused on the metro cities...

Deeptech Startup Newtrace Secures $6.3 Mn in Pre-Series A Round

Bengaluru-based deeptech startup Newtrace has raised $6.3 million (INR 56.93 crore) in a pre-Series...

Peak XV Partners Closes $1.3 Bn in Fresh Capital to Back Startups Across India and APAC

Peak XV Partners (formerly Sequoia Capital India & SEA) has closed $1.3 billion in...

Inflection Point Ventures leads INR 4 Cr seed round in Fintech Startup Roopya

West Bengal based no-code ‘lending-as-a-service’ platform Roopya has raised INR 4 Crore in a...

LTM partners with the Indian Institute of Creative Technologies to strengthen creative technology skilling

LTM, a Larsen & Toubro Group company, and the Indian Institute of Creative Technologies...