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Modi 3.0: What’s in Store for MSMEs and Startups?

The government’s focus on infrastructure and inclusivity while pushing for economic growth will be critical in shaping India’s trajectory in the coming years. According to the final poll results, Prime Minister Narendra Modi-led National Democratic Alliance (NDA) is set to form its third term in the world’s largest democracy. As all eyes turn to Modi 3.0, what’s in store for MSMEs and startups will significantly impact the Indian economy and strengthen the country’s position in the global market.

Industry experts believe that the continuity of governance promises stability and the potential to bolster India’s position as a global economic powerhouse and a reliable supply chain partner. One of the key pillars of the NDA’s strategy is the acceleration of infrastructure development. During the unveiling of the BJP’s manifesto, Modi emphasized creating jobs in sectors such as infrastructure, aviation, railways, electric vehicles, green energy, semiconductors, and pharmaceuticals, among others, to address rising unemployment levels despite strong economic growth.

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The Role of MSMEs and Startups

For Micro, Small, and Medium Enterprises (MSMEs) and startups, the NDA’s third-term victory brings significant opportunities. Here’s a closer look at how Modi 3.0’s focus areas will benefit these crucial sectors:

Infrastructure Development: A Catalyst for MSMEs

Infrastructure development will create a robust ecosystem for MSMEs to thrive. Improved transportation networks, such as highways, railways, and ports, will reduce logistical costs and enhance market access. Additionally, the construction and expansion of smart cities will provide MSMEs with better facilities and business opportunities.

Innovation and Technology: A Boost for Startups

The government’s push for sectors like electric vehicles, green energy, and semiconductors aligns perfectly with the innovative spirit of startups. By fostering an environment that supports technological advancements, startups can spearhead innovations in these sectors, contributing to economic growth and job creation.

Investment and Capital Expenditure: Fueling Growth

The recent large transfer of the RBI surplus to the government enables increased capital expenditure (capex), which is crucial for sustaining investment-led growth. 

This financial boost will likely result in more funding opportunities and incentives for MSMEs and startups, helping them scale their operations and innovate.

Inclusive Growth: Opportunities for All

The government’s commitment to inclusivity ensures that economic growth benefits all segments of society. For MSMEs and startups, this means access to various government schemes, subsidies, and support systems designed to foster entrepreneurship and innovation across diverse regions and demographics.


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Specific Areas of Impact

1. Electric Vehicles (EVs):

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2. Green Energy:

3. Semiconductors:

4. Pharmaceuticals:


As India embarks on a new chapter under Modi 3.0, the focus on infrastructure, technology, and inclusive growth presents immense opportunities for MSMEs and startups. The government’s strategic initiatives are poised to create a thriving environment where innovation, entrepreneurship, and economic development go hand in hand.

By tapping into these opportunities, MSMEs and startups can play a pivotal role in shaping India’s future as a global economic powerhouse.

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Disclaimer - This article is based on the details shared by the Business owner during personal discussion &/or thro mail, messages, website & Social Media. Readers may ascertain the facts personally and involve in any business transactions. IS360 can not be responsible for the inconveniences if any.