Union Budget 2025–26 · Presented February 1, 2025
Budget 2025–26: What Changed for India's MSMEs
Finance Minister Nirmala Sitharaman called MSMEs
the "second engine of growth" — and backed it
with the biggest MSME definition expansion in 5 years,
doubled credit guarantees, and a new credit card for
micro enterprises.
All data verified · Source: pib.gov.in ·
Gazette S.O. 1364(E) dated March 21, 2025
2.5×
Investment limits
raised for all MSMEs
raised for all MSMEs
₹10Cr
New CGTMSE guarantee
cover (was ₹5 Crore)
cover (was ₹5 Crore)
₹20L
Mudra Tarun Plus
new limit (was ₹10L)
new limit (was ₹10L)
₹5L
New MSME credit card
limit on Udyam portal
limit on Udyam portal
Biggest Change · Effective 01 April 2025
MSME Definition Revised — Who Qualifies Now?
Investment limits raised 2.5 times and turnover limits doubled for all three MSME categories. Effective from April 1, 2025 via Gazette Notification S.O. 1364(E) dated March 21, 2025. Many businesses that had grown out of MSME status are now eligible again.
Category
Old Investment
New Investment
Old Turnover
New Turnover
🌱
Micro Enterprise
₹1 Cr
₹2.5 Cr
↑ 2.5×
₹5 Cr
₹10 Cr
↑ 2×
🌿
Small Enterprise
₹10 Cr
₹25 Cr
↑ 2.5×
₹50 Cr
₹100 Cr
↑ 2×
🌳
Medium Enterprise
₹50 Cr
₹125 Cr
↑ 2.5×
₹250 Cr
₹500 Cr
↑ 2×
Source: Gazette Notification S.O. 1364(E) dated March 21, 2025 · msme.gov.in
Budget 2025–26
All MSME Announcements at a Glance
📏
MSME Definition Expanded
Investment limits raised 2.5× and turnover limits doubled
for all three categories. Effective April 1, 2025.
🛡️
CGTMSE Guarantee Doubled
Credit guarantee cover for Micro and Small Enterprises
raised from ₹5 Crore to ₹10 Crore
🚀
Startup Guarantee Doubled
Startup guarantee cover raised from ₹10 Crore to
₹20 Crore. Fee reduced to 1% for
27 priority sectors.
💳
New MSME Credit Card
Customised credit cards with ₹5 Lakh limit
for micro enterprises on Udyam portal.
10 lakh cards to be issued in Year 1.
🏦
Mudra Tarun Plus — ₹20 Lakh
Tarun Plus category limit raised from ₹10 Lakh to
₹20 Lakh for well-established
micro businesses.
🌍
Exporter MSME Loans
Term loans up to ₹20 Crore with
enhanced CGTMSE guarantee cover for well-run
exporter MSMEs.
👩💼
First-Time Entrepreneur Scheme
New scheme for 5 lakh women, SC and
ST first-time entrepreneurs — term loans up to
₹2 Crore over 5 years.
📦
Export Promotion Mission
Joint mission by Commerce, MSME and Finance
ministries — export credit access, cross-border
factoring, non-tariff barrier support for MSMEs.
🏭
Sector-Specific Focus
Special focus on footwear, leather and toy
manufacturing — to boost employment and position
India as a global manufacturing hub.
Source: pib.gov.in · indiabudget.gov.in · February 1, 2025
Scheme by Scheme
What Changed in Each Scheme
Scheme
Before Budget
After Budget 2025
🏦
Mudra Loan
Tarun max: ₹10 Lakh
Tarun Plus: Not available
Tarun Plus: Not available
✅ Tarun Plus introduced
New max: ₹20 Lakh
New max: ₹20 Lakh
🛡️
CGTMSE
Max guarantee cover:
₹5 Crore for MSEs
₹5 Crore for MSEs
✅ Doubled to ₹10 Crore
Exporter MSMEs: up to ₹20 Crore
Exporter MSMEs: up to ₹20 Crore
📋
Udyam Registration
Old investment/turnover
limits applied
limits applied
✅ New limits from Apr 2025
+ ₹5L Credit Card for
Udyam-registered micro units
+ ₹5L Credit Card for
Udyam-registered micro units
🏗️
PMEGP
Max project cost:
₹50L mfg · ₹20L service
₹50L mfg · ₹20L service
✅ No change to project limits
Sector-specific focus added
(footwear, leather, toys)
Sector-specific focus added
(footwear, leather, toys)
🔨
PM Vishwakarma
Ongoing scheme
₹13,000 Cr outlay 2023–28
₹13,000 Cr outlay 2023–28
✅ Continued with full support
Online marketing via e-commerce
platforms added
Online marketing via e-commerce
platforms added
Source: pib.gov.in · indiabudget.gov.in
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