Union Budget 2024-25: FM Nirmala Sitharaman Focuses On Manufacturing & MSMEs

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 today, marking her seventh consecutive budget, surpassing the record held by the late Morarji Desai. Prior to presenting the budget in Parliament, Sitharaman met with President Droupadi Murmu.

The Union Budget for 2024-25 emphasizes significant reforms in income tax structure and aims to enhance the ease of doing business in India. A key highlight of the budget is its dedicated focus on supporting the manufacturing sector and micro, small, and medium enterprises (MSMEs), particularly in labor-intensive industries.

Support for MSMEs and Manufacturing

Finance Minister Sitharaman announced several measures to bolster MSMEs and the manufacturing sector:

• Self-Financing Guarantee Fund: A new self-financing guarantee fund will provide up to ₹100 crore in guarantee cover for each applicant, although the loan amount may exceed this limit. This initiative aims to improve access to credit for MSMEs.
• Enhanced Credit Assessment: Public sector banks will develop internal capabilities to assess MSMEs for credit, eliminating reliance on external assessments. A new mechanism will also facilitate the continuation of bank credit to MSMEs during periods of financial stress.

Mudra Loans

• Increased Loan Limit: The Mudra loan limit for entrepreneurs who have successfully repaid previous loans under the ‘Tarun’ category will be increased from ₹10 lakh to ₹20 lakh, providing greater financial support for business expansion.

Food Irradiation and Quality Testing

• Support for Food Irradiation Units: Financial assistance will be provided for establishing 50 multi-product food irradiation units in the MSME sector.
• Quality & Safety Testing Labs: The budget includes provisions for setting up 100 food quality and safety testing labs with NABL accreditation to ensure high standards.
• E-Commerce Export Hubs: To facilitate international sales, E-Commerce Export Hubs will be set up in a public-private partnership mode, benefiting MSMEs and traditional artisans.

Internship Opportunities

• Internship Scheme: As part of the Prime Minister’s package, a new scheme will offer internship opportunities to 1 crore youth in 500 top companies over the next five years, creating pathways for young talent to gain valuable experience in leading firms.

The Budget 2024-25 reflects a strong commitment to nurturing the growth of MSMEs and enhancing the manufacturing sector’s capabilities.

Also read: Budget 2024 Live Updates: Nirmala Sitharaman Set to Present Budget with Focus on Job Creation and Tax Rate Cuts