What MSMEs, Startups, and Women Entrepreneurs Expect After Economic Survey 2024-25
The Union Budget 2025-26 MSMEs focus is crucial as the Economic Survey 2024-25 highlights 6.4% GDP growth, lower inflation at 4.9%, and rising MSME credit flow. This budget must address key challenges and unlock new growth opportunities for MSMEs, startups, women entrepreneurs, and rural businesses.
1. MSME Sector: Expectations from Budget 2025-26
MSMEs contribute 30% to India’s GDP and 45% of exports, making them the backbone of the economy. The Economic Survey highlights a rise in MSME credit, but challenges like delayed payments, lack of working capital, and skill gaps persist. Â
What MSMEs Need from the Budget:
- Easier Access to Credit: Expansion of CGTMSE (Credit Guarantee Scheme) and collateral-free loans to support small businesses. Â
- Faster Payment Mechanism: Strict enforcement of Samadhan Portal to clear MSME dues from corporates and government entities. Â
- Lower Compliance Burden: Simplification of GST norms and fewer regulatory hurdles to improve ease of doing business. Â
- Technology Adoption Incentives: Tax rebates for businesses investing in AI, automation, and digital tools. Â
- Export & Market Expansion: Enhanced PLI (Production-Linked Incentive) for MSMEs in agri-processing, handicrafts, and rural industries. Â
2. Startups: Creating a Pro-Growth Ecosystem
India has over 1.2 lakh startups and 110+ unicorns, but funding winter, regulatory complexities, and scalability remain concerns. Â
Key Expectations:
- Startup Fund of Funds: More allocation to SIDBI Fund of Funds for early-stage startups. Â
- Tax Relief on ESOPs: Changes in taxation to encourage talent retention. Â
- Simplified GST & Compliance: One-stop digital compliance framework for startups. Â
- Special Incentives for AI & DeepTech: AI-driven startups in healthcare, fintech, and edtech need tax exemptions and funding support. Â
3. Women & Rural Entrepreneurs: Breaking Barriers to Growth
The Economic Survey highlights growth in women-led businesses, but financial access, market linkage, and skill training remain key concerns. Â
Women Entrepreneur Expectations:
- More Funds for Women-Led Startups: Expansion of Mahila Samriddhi Yojana & Stand-Up India Scheme. Â
- Credit Access without Collateral: Simplified micro-credit loans for women SHGs and rural businesses. Â
- Support for Rural MSMEs: PLI schemes and tax holidays for millet-based businesses, handicrafts, and agro-processing. Â
- Women in Tech & AI: Grants for women-led AI startups and digital literacy programs. Â
4. Rural MSMEs & Agri-Tech Startups: Strengthening the Grassroots Economy
With rising imports (6% growth) and moderate exports, rural industries need stronger support. Â
Key Areas to Focus:
- Cluster-Based Rural Hubs: Expanding the One District One Product (ODOP) model to promote rural MSMEs. Â
- Digital Infrastructure: High-speed broadband and AI-powered platforms for e-commerce in rural India. Â
- Cold Chain & Logistics Support: More investment in rural logistics, warehousing, and last-mile delivery. Â
- Millet & Agri-Tech Boost: Incentives for value-added millet products and Agri-Tech startups using AI/ML.
Final Thoughts: A Budget for Inclusive Growth
The Union Budget 2025-26 must prioritize funding access, compliance ease, digital transformation, and rural inclusion.
As India gears up for the next phase of economic growth, empowering MSMEs, startups, women entrepreneurs, and rural businesses will be the key to ensuring sustainable and equitable development.
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