The Union Budget 2025 has introduced a comprehensive growth agenda aimed at strengthening the startup and MSME ecosystem. A key highlight is the newly proposed National Manufacturing Mission, which aims to create a more competitive and self-reliant industrial base. This move is expected to drive innovation and increase efficiency across multiple sectors.
One of the most significant announcements is the expansion of credit access for MSMEs and startups. Micro and small enterprises will now benefit from double the credit guarantee cover, ensuring stronger financial backing for innovation. Additionally, startups in key sectors will gain from higher credit limits and reduced guarantee fees, while well-managed exporter MSMEs will have access to larger term loans. These measures are designed to enhance liquidity, attract investments, and reinforce India's Make In India initiative.
Another landmark reform in the budget is the decision to permit 100% Foreign Direct Investment (FDI) in the insurance sector. This transformative policy will facilitate global investments, better capital influx, and increased competition, ultimately benefiting consumers with improved insurance products and services.
Commenting on the budget, Sajja Praveen Chowdary, Director at Policybazaar For Business, stated, "The measures introduced in the Union Budget 2025 reaffirm India's commitment to fostering a thriving entrepreneurial ecosystem. Increased credit access for MSMEs and startups, coupled with progressive reforms in the insurance sector, will play a crucial role in shaping a resilient economy."
With these strategic policy changes, the government has reaffirmed its focus on entrepreneurial growth, financial stability, and global competitiveness, setting the stage for sustained economic progress.