Union Budget 2025 : Boosting MSMEs as India's Second Engine of Growth
In a crucial development during the Union Budget 2025, Finance Minister Nirmala Sitharaman made significant announcements aimed at boosting the Micro, Small, and Medium Enterprises (MSMEs) sector, positioning it as the second engine of growth for India’s economy.
The focus will be on the 5.7 crore MSMEs, the second development engine. These comprise more than one crore registered enterprises that employ 7.5 crore people and account for 36% of India's manufacturing. These MSMEs, which account for 45% of India's exports, are essential to the country's positioning as a global manufacturing hub. The government would increase MSMEs' investment and turnover limitations by 2.5 and 2 times, respectively, in order to spur their expansion and effectiveness. It is anticipated that this action will enable MSMEs to expand, develop, and create more job opportunities for young people.
