--- title: "Budget 2025: MSME investment, turnover limits raised to 2.5 and 2 times" type: "News" locale: "en" url: "https://longbridge.com/en/news/226852554.md" description: "Union Finance Minister Nirmala Sitharaman announced increased investment and turnover limits for micro, small, and medium enterprises (MSMEs) in Budget 2025. The investment limit for micro enterprises rises from Rs 1 crore to Rs 2.5 crore, while turnover increases from Rs 5 crore to Rs 10 crore. Small enterprises will see limits raised from Rs 10 crore to Rs 25 crore and from Rs 50 crore to Rs 100 crore for turnover. Medium enterprises' limits will increase from Rs 50 crore to Rs 125 crore for investment and from Rs 250 crore to Rs 500 crore for turnover. The credit guarantee cover for micro and small enterprises will also be enhanced, aiming to improve access to capital and support MSME growth." datetime: "2025-02-01T14:00:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/226852554.md) - [en](https://longbridge.com/en/news/226852554.md) - [zh-HK](https://longbridge.com/zh-HK/news/226852554.md) --- # Budget 2025: MSME investment, turnover limits raised to 2.5 and 2 times Union Finance Minister Nirmala Sitharaman on Saturday announced that, to help micro, small, and medium enterprises (MSMEs) achieve higher efficiencies of scale, technological upgradation, and better access to capital, the investment and turnover limits for classification have been increased to 2.5 and 2 times, respectively. “Currently, over 1 crore registered MSMEs, employing 7.5 crore people and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub. With their quality products, these MSMEs contribute to 45 per cent of our exports,” said the Union Finance Minister. **ALSO READ: Inclusive Budget to create jobs, boost agriculture and MSME growth** With this, the investment limit for micro enterprises will be increased from the current Rs 1 crore to Rs 2.5 crore, while turnover will be increased from Rs 5 crore to Rs 10 crore. Similarly, for small enterprises, the investment limit will be raised from Rs 10 crore to Rs 25 crore, and turnover from Rs 50 crore to Rs 100 crore. For medium enterprises, investment has been increased from Rs 50 crore to Rs 125 crore, and turnover from Rs 250 crore to Rs 500 crore. “This will give them the confidence to grow and generate employment for our youth,” Sitharaman added. The industry believes that this move will help improve the recovery of dues from defaulting buyers. “This new change will impact more than 2 crore SMEs. The MSME Act 2006 entitles micro and small industries to recover money within 45 days, failing which the buyer must pay three times the bank interest for the defaulted period. Increasing the limit will bring more industries under the present scheme, improving the financial health of micro and small industries,” said D P Goel, co-chair, MSME Committee, PHD Chamber of Commerce and Industry. Sitharaman further noted that to improve access to credit, the credit guarantee cover will be enhanced. For micro and small enterprises, the credit guarantee cover will be raised from Rs 5 crore to Rs 10 crore, leading to additional credit of Rs 1.5 lakh crore over the next five years. For startups, the limit will be increased from Rs 10 crore to Rs 20 crore, with the guarantee fee moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat. Additionally, well-run exporter MSMEs will now be eligible for term loans up to Rs 20 crore. “We will set up an Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance. It will facilitate easy access to export credit, cross-border factoring support, and assistance to MSMEs in tackling non-tariff measures in overseas markets,” Sitharaman said. “The Export Mission (allocation of Rs 2,250 crore) could not have come at a better time, especially when there is huge potential for Indian B2B and e-commerce exports worldwide. However, not extending both the interest equalisation scheme and market access initiative scheme could be a concern for exporter MSMEs,” said Vinod Kumar, president, India SME Forum. The Finance Minister also announced the introduction of customised credit cards for micro enterprises registered on the Udyam Portal. "We will introduce customised credit cards with a Rs 5 lakh limit for micro enterprises registered on the Udyam Portal. In the first year, 10 lakh such cards will be issued," Sitharaman said in her Budget speech for FY25-26. For FY26, the MSME ministry has been allocated Rs 23,168 crore, up from Rs 17,306 crore in the revised estimates for FY25. ### Related Stocks - [001234.CN](https://longbridge.com/en/quote/001234.CN.md) - [SMCI.US](https://longbridge.com/en/quote/SMCI.US.md) - [300296.CN](https://longbridge.com/en/quote/300296.CN.md) ## Related News & Research - [18:00 ETMercy Medical Center Medical-Surgical Nursing Team Earns Prestigious AMSN PRISM Award®](https://longbridge.com/en/news/287125237.md) - [SWITZERLAND M3 MONEY SUPPLY YOY APR: 4.3% (PREV 4.4%)](https://longbridge.com/en/news/287174381.md) - [ACEN Australia's NSW solar output surges 87% as new capacity powers up](https://longbridge.com/en/news/287096598.md) - [Kidoz Inc. 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