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Indian Budget 2025: Key Highlights for Startups, Industry, MSMEs, Agriculture, and Other Sectors

The Union Budget 2025 presents a forward-looking approach, aiming to strengthen India’s economy by supporting key sectors such as startups, industries, MSMEs, agriculture, and other critical areas. Here’s a detailed breakdown of the major initiatives and benefits announced: 1. Boost for Startups 2. Industry and Infrastructure Growth 3. Strengthening MSMEs 4. Agricultural Development Initiatives 5.…

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The Union Budget 2025 presents a forward-looking approach, aiming to strengthen India’s economy by supporting key sectors such as startups, industries, MSMEs, agriculture, and other critical areas. Here’s a detailed breakdown of the major initiatives and benefits announced:

1. Boost for Startups

  • Extended Tax Benefits: Startups can now avail a 100% tax exemption for three out of ten years, with an extension of five years under Section 80-IAC.
  • Increased Credit Guarantee Cover: Credit guarantee for startups has been increased from ₹10 crore to ₹20 crore, with a 1% moderated guarantee fee for 27 priority sectors.
  • Fund of Funds: A new ₹10,000 crore Fund of Funds has been established to support emerging businesses and boost innovation.
  • Customized Credit Cards for Micro Enterprises: Startups and small businesses registered on the Udyam portal can now access micro-enterprise credit cards with a ₹5 lakh limit.
  • Support for First-Time Entrepreneurs: A scheme to provide term loans of up to ₹2 crore for women, SC/ST entrepreneurs, along with online skill development programs.

2. Industry and Infrastructure Growth

  • Ease of Doing Business: A high-level regulatory reform committee will review business regulations, certifications, and licenses to reduce compliance burdens.
  • Investment-Friendly Index: The government will launch an Investment Friendliness Index to assess the ease of doing business across states.
  • Manufacturing Support: A new credit guarantee scheme will allow manufacturing MSMEs to acquire machinery without collateral, with a government-supported self-financing guarantee fund.

3. Strengthening MSMEs

  • Enhanced Credit Facilities: The government has increased the credit guarantee cover for MSMEs to ₹100 million to facilitate easier access to finance.
  • MUDRA Loan Expansion: The loan limit under the MUDRA scheme has doubled to ₹2 million, helping small businesses scale operations.
  • Support for Stressed MSMEs: A government-backed fund will provide financial assistance to MSMEs in distress, ensuring access to bank credit.

4. Agricultural Development Initiatives

  • Prime Minister Dhan-Dhaanya Krishi Yojana: Focuses on 100 agricultural districts, benefiting 17 million farmers through improved productivity.
  • Kisan Credit Card (KCC) Expansion: Short-term loans up to ₹5 lakh for 7.7 crore farmers, fishermen, and dairy farmers.
  • Six-Year Pulses and Cotton Mission: A long-term initiative to boost domestic production of pulses (tur, urad, masoor) and improve cotton yield.
  • National Mission on High-Yielding Seeds: A program to develop climate-resilient, high-yielding crop varieties to address climate change challenges.
  • Horticulture Expansion: ₹500 crore allocated to enhance fruit and vegetable production.
  • Natural Farming Promotion: Target to train 1 crore farmers in sustainable farming over the next two years, with 10,000 bio-input resource centers.
  • Makhana Board in Bihar: Supporting makhana (fox nut) cultivation with better research, branding, and marketing.

5. Initiatives in Other Sectors

  • Healthcare: A ₹5,000 crore fund has been allocated to enhance primary healthcare infrastructure and improve digital health initiatives.
  • Education & Skill Development: Launch of a National Skill Enhancement Program, aiming to provide advanced vocational training to 10 million youth.
  • Renewable Energy & Sustainability: Investment in solar and wind energy projects to increase renewable energy capacity by 30 GW in the next five years.
  • Urban Development: Expansion of the Smart Cities Mission, with ₹15,000 crore allocated for infrastructure upgrades in Tier 2 and Tier 3 cities.
  • Tourism & Culture: A new ‘Incredible India 2.0’ campaign to boost tourism, along with funds allocated for heritage site conservation.

6. Government Measures to Boost Demand

  • Tax Cuts for the Middle Class: Reduction in income tax slabs to increase disposable income and consumer spending.
  • Infrastructure Investments: Increased capital expenditure in roads, railways, and metro projects to stimulate economic growth and job creation.
  • Rural Spending: Increased rural employment programs and direct benefit transfers to enhance rural purchasing power.
  • Export Promotion: Special incentives for manufacturers and MSMEs to expand global exports and drive production demand.

Conclusion

The Indian Budget 2025 demonstrates a strategic vision by boosting entrepreneurship, enhancing industrial growth, strengthening MSMEs, and empowering farmers. With strong support for startups, ease of doing business, infrastructure development, and rural growth initiatives, this budget aims to drive economic growth and create a robust, self-reliant India.

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