New Benefits Under MSME Schemes in 2025

The MSME sector is flourishing in India; the central government notes and encourages its significance through various measures. It has the vast potential to create significant employment opportunities with low capital investment in India. MSMEs lead the country's inclusive industrial development and largely complement large industries by nurturing entrepreneurship. 

The statistics of the Press Information Bureau claim that the exports of MSMEs have grown phenomenally, increasing from ₹3.95 lakh crore in 2020-21 to ₹12.39 lakh crore in 2024-25. The total number of exporting MSMEs in 2024-25 increased extensively from 52,849 in 2020-21 to 1,73,350 in 2024-25. MSMEs have exhibited exemplary growth, contributing 45.73% to exports in 2023-24, which increased to 45.79% by May 2024.

The growing influence of MSMEs on India's trade performance has made GOI extend more support to them. In 2025, the Indian government has introduced several new benefits under various schemes to bolster the Micro, Small, and Medium Enterprises sector. Key initiatives include:

Revised MSME Classification Criteria

Finance Minister Nirmala Sitharaman announced a significant update to the New MSME classification in the Union Budget 2025-26 to boost development and provide adequate access to resources. As per the revised classification, the investment limit is increased by 2.5 times, doubling the turnover limits. This move is aimed at fostering growth, encouraging innovation, and creating a more enabling ecosystem for MSMEs to flourish, and it may come into effect from April 1, 2025.

Enhanced Credit Support

• In her Union budget 2025-26 address, the Finance Minister announced that the credit guarantee cover for MSMEs will be increased from ₹5 crore to ₹10 crore, enabling an additional ₹1.5 lakh crore in credit over the next five years.

• Startups can now benefit from a doubled guarantee cover of ₹20 crore and a reduced fee of 1% for loans in 27 priority sectors.

• A new term loan scheme offers up to ₹20 crore with enhanced guarantee cover to strengthen global competitiveness. 

Support for First-Time Entrepreneurs

• A new scheme of GOI offers funds of ₹10,000 crores to expand support for blooming startups.

• Five lakh first-time individuals, including women, Scheduled caste, and Scheduled tribe entrepreneurs, will be offered term loans up to ₹2 crore over five years. This initiative incorporates lessons from the Stand-Up India scheme and includes online capacity building for entrepreneurship and managerial skills. 

Manufacturing and Clean Tech Initiatives

• The National Manufacturing Mission furnishes policy support and roadmaps for industries under the Make in India initiative, stressing clean tech manufacturing. This includes stimulating domestic production of solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment.

• These measures of GOI reflect its commitment to strengthening the MSME sector, fostering innovation, enhancing competitiveness, and ensuring better access to financial and infrastructural resources.

The registration of MSME ensures that your startup gets all the government concessions, tax relations, and other benefits. To register your MSME today, contact Lawgical India Business Developers Pvt. Ltd. Rely on us completely to navigate the MSME registration process effectively. We will help you figure out the key legal requirements and fulfil them on your behalf. 

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FAQs

1. What are the services offered by Lawgical India?

Lawgical India specializes in company registration, obtaining FSSAI license, Apeda Registration, GST Registration, MSME Registration, Pan Registration in India.

2. What are the main steps taken by the government to boost the MSME sector?

GOI has introduced several beneficiary schemes, including:

• Prime Minister's Rozgar Yojana

• Credit Linked Capital Subsidy Scheme for Technology Upgradation.

• Credit Guarantee Scheme.

• Participation in International Fairs.

• Purchase and Price Preference Policy.