spot_img

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

Date:

Trending

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.

- Advertisement -

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.
Advertisement

More Latest Stories

More Articles

Adda247 CEO Bimaljeet Singh Bhasin on Career247 and the Push for Job-Ready Education

In an interview with TechGraph, Bimaljeet Singh Bhasin, CEO of Skilling and Higher Education Business at Adda247, outlines how the persistent gap between academic...

The Future of Preventive Healthcare in India and the Role of Digital Platforms

India is set to decide on the ongoing healthcare evolution, where the main point of emphasis is shifting gradually from curing to preventing diseases. Along with the increase in the number of lifestyle-related diseases, the rise in life expectancy, and the growing awareness among...

How Cloud Infrastructure Is Powering India’s SaaS and App Economy

India's Software as a Service (SaaS) and app economy has become one of the...

Skincare for India’s Condition: SkinInspired Founder Piyush Jain on Making Actives Work for Indian Skin

Speaking with TechGraph, Piyush Jain, Founder of SkinInspired, discussed how India’s skincare market has...

India’s AI Education Push: Redrob COO Kartikey Handa on Building Open AI Models for 300 Million Students

Speaking with TechGraph, Kartikey Handa, Chief Operating Officer and Head of India Operations at...

Dr Kamal Chhabra on KC GlobEd’s Approach to Global Finance and Accounting Education

Speaking with TechGraph, Dr Kamal Chhabra, Founder and CEO of KC GlobEd, discussed how...

Home Improvements That Benefit You Today and Boost Value Tomorrow

When it comes to home improvements, the best upgrades are those that provide immediate...

India’s AIF Shift: Steptrade Capital’s Kresha Gupta on the Evolution of Alternative Investments in India

Speaking with TechGraph, Kresha Gupta, Director and Fund Manager at Steptrade Capital, discussed how...

Why Global Manufacturing Leaders Are Rethinking the Role of Packaging Automation

In the global manufacturing landscape, packaging has quietly evolved from a backend operational activity into a strategic business driver. For companies with turnover above...

Vimal Singh on ReadyAssist’s Role in Modernising Roadside Assistance in India

Speaking with TechGraph, Vimal Singh, Founder of ReadyAssist, discussed how traditional roadside assistance models...

The Shift to Intelligent Hiring: HunarAI’s Krishna Khandelwal on How AI Is Reshaping Recruitment in India

In an interaction with TechGraph, Krishna Khandelwal, Founder and CEO of Hunar.AI, outlined how...

The Rise of Cyber Cartels: How the Dark Web Fuels Digital Extortion?

In 2025, cybercrime has evolved beyond individual hackers or little ransomware criminal gangs into...

The Rise of Emotionally Intelligent AI: What It Means for Customer Experience

A shift is transpiring across customer touchpoints as digital systems start to understand the...

How Autonomous Infrastructure Will Shape the Future of Enterprise Technology in 2026

Autonomous infrastructure is moving from imagination to inevitability. With its strengths in anticipation, analysis, and correction, it is quietly becoming the foundation of modern...

NVIDIA EVP Debora Shoquist Offloads 80,000 Shares for About $14.77 Mn

NVIDIA Corp. (NASDAQ: NVDA) Executive Vice President of Operations, Debora Shoquist has sold 80,000 shares of the company’s common stock in transactions dated December 9, 2025, with the total sale amounting to approximately $ 14.77 million. According to the Form 4 filed with the U.S....

Ram Shriram Reports Transfers of Alphabet Shares Through Trust Annuity Payments

Alphabet Inc. (NASDAQ: GOOGL) Director K. Ram Shriram has reported movements in his Alphabet...

AI Infrastructure Wars: Do Nvidia, Amazon, and Microsoft Still Have Room to Run?

Indian investors are at a pivotal moment. While our domestic markets have seen meteoric...

Meta Declares Quarterly Cash Dividend Of $0.525 Per Share

Facebook parent company, Meta Platforms Inc. (NASDAQ:META) said its board of directors has declared...

Lok Sabha: Government releases ₹68K crore under MGNREGS; wage payments routed via DBT

New Delhi, India: Union Agriculture Minister Shivraj Singh Chouhan said the government has released...

The Evolving Classroom: Venkateshwar International School’s Pooja Sharma on Changing Role of Schools in Delhi’s CBSE Ecosystem

Speaking with TechGraph, Pooja Sharma, Vice Principal of Venkateshwar International School (VIS), discussed how...

Digital Generics: How AI is Redefining the Future of Affordable Medicine

It was with pride that global headlines described India as the world's pharmacy, supplying...

The Road to Equality in Tech: Women In Cloud’s Chaitra Vedullapalli on Reshaping Opportunity for Women Entrepreneurs Globally

In an interview with TechGraph, Chaitra Vedullapalli, Co-Founder of Women In Cloud, discussed how...

How AI is Improving Risk Management Among Crypto Traders

Over the past few years, the role of Artificial Intelligence in almost every sector...

Reimagining Creative Operations: ButtonShift’s Deepankar Das on Bringing Telemetry & Visual Intelligence to Modern Workflows

Speaking with TechGraph, Deepankar Das, Co-Founder and CEO of ButtonShift, discussed how traditional task...

The Rise of Cyber Cartels: How the Dark Web Fuels Digital Extortion?

In 2025, cybercrime has evolved beyond individual hackers or little ransomware criminal gangs into...

Inside Channel Economy: Almonds AI CEO Abhinav Jain on Fixing the Blind Spot in India’s Distribution Ecosystem

Speaking with TechGraph, Abhinav Jain, Co-Founder and CEO of Almonds AI, outlined how India’s...

Kuwait Raises Income Tax Penalty Against IndiGo Operator, Company Plans Legal Action

IndiGo Airline's parent company, InterGlobe Aviation Limited disclosed it received an income tax demand...

Supreme Court Allows Texas to Use New Congressional Map for 2026 Midterms

The U.S. Supreme Court has allowed Texas to move ahead with its newly redrawn...

Beyond Instant Approvals: PayMe CEO Mahesh Shukla on Building Compliant Lending for India’s New Credit Economy

Speaking with TechGraph, Mahesh Shukla, Founder and CEO of PayMe, discussed how India’s digital...

The Rise of Emotionally Intelligent AI: What It Means for Customer Experience

A shift is transpiring across customer touchpoints as digital systems start to understand the...

How AI is Improving Risk Management Among Crypto Traders

Over the past few years, the role of Artificial Intelligence in almost every sector...

The AI Advantage: How Intelligent Learning Solutions Are Rewriting Workforce Productivity in 2025 and Beyond

In 2025, artificial intelligence is no longer a futuristic concept — it’s the invisible...

Reimagining Creative Operations: ButtonShift’s Deepankar Das on Bringing Telemetry & Visual Intelligence to Modern Workflows

Speaking with TechGraph, Deepankar Das, Co-Founder and CEO of ButtonShift, discussed how traditional task...