MSME Support AND Make in India Growth

Introduction

The Union Budget 2025 unveils significant initiatives to strengthen MSMEs and advance the Make in India campaign. The investment and turnover thresholds for MSME classification have been raised, enabling greater eligibility. Tax benefits under Section 80-IAC for eligible start-ups have been extended to companies incorporated up to April 1, 2030. A ₹5 lakh credit card facility will be introduced for micro-enterprises registered on the Udyam portal, alongside a new loan scheme designed to support first-time entrepreneurs, including women and SC/ST applicants. Additionally, credit guarantee coverage has been expanded for MSMEs, start-ups, and exporter MSMEs to improve financial access. This article provides a comprehensive overview of each of these measures

Revision in MSME Classification Criteria

Category	Investment (₹ Crore)	Turnover (₹ Crore)
	Current	Revised
Micro Enterprises	1	2.5
Small Enterprises	10	25
Medium Enterprises	50	125

Extension of Tax Benefits for Start-ups

Under Section 80-IAC, eligible start-ups incorporated between April 1, 2016, and April 1, 2025, can claim 100% deduction of profits. This benefit is now extended by five years, covering start-ups incorporated before April 1, 2030.

Credit Cards for Micro Enterprises

A customized credit card with a ₹5 lakh limit will be issued to micro enterprises registered on the Udyam portal. In the first year, 10 lakh such cards are expected to be distributed.

Scheme for First-Time Entrepreneurs

A new scheme will support 5 lakh first-time entrepreneurs—including women, Scheduled Castes, and Scheduled Tribes—by providing term loans up to ₹2 crore over the next five years