(GIST OF KURUKSHETRA) Revitalizing India’s MSMEs

(MAY-2025)

Revitalizing India’s MSMEs

As India aspires to become a $5 trillion economy, the MSME sector is not just being supported; it is being equipped to lead. The transformation is not just economic— it is structural, inclusive, and future-ready. The Union Budget 2025-26 heralds a transformative phase for India’s Micro, Small, and Medium Enterprises (MSME) sector by addressing foundational challenges related to scale, access, and long-term sustainability. With the symbolic message— “Our Small Hands to Make You LARGE”— the Budget delivers a visionary roadmap.

Transformative Phase for India’s Msme Sector

Revised Classification Criteria

The Union Budget 2025-26 heralds a transformative phase for India’s Micro, Small, and Medium Enterprises (MSME) sector by addressing foundational challenges related to scale, access, and long-term sustainability. Among the most significant reforms is the upward revision of classification thresholds, aimed at encouraging MSMEs to grow without the fear of losing their status and associated benefits.
Under the revised framework, Micro Enterprises can now invest up to 2.5 crore (from crore) with a turnover limit of 10 crore (earlier 5 crore); Small Enterprises are allowed investments up to crore (from crore) and turnover up to crore (up from crore); while Medium Enterprises can invest up to crore (from 50 crore) and achieve turnover up to crore (earlier 250 crore).
This recalibration— representing a 2.5x increase in investment and 2x in turnover thresholds— is expected to boost productivity, encourage adoption of advanced technologies, create employment, and bridge the “missing middle” in India’s industrial landscape. Integrated within a broader policy push to expand credit access, promote inclusive entrepreneurship, and rejuvenate labour-intensive industries, this move is a key step in empowering MSMEs to drive India’s progress toward a $5 trillion economy.

Enhanced Credit Availability: Fueling MSME Growth

Recognizing the critical role of finance in sustaining and scaling Micro, Small, and Medium Enterprises industries by organizing artisans into clusters for improved product development, diversification, and value addition.
Restructured in 2014-15 to enhance scale and efficiency, SFURTI aims to integrate artisans into organized value chains, empowering them through shared infrastructure, modern tools, raw materials, skill training, and marketing support. This cluster-based model promotes collaboration, reduces redundancies, and adapts traditional knowledge for contemporary markets, ensuring sustainable livelihoods.
Since its revamp, SFURTI has approved 513 clusters, with 376 fully functional, covering diverse sectors like handloom, handicrafts, coir, bamboo, and agro-based industries. As of 12 December 2024, the scheme has generated employment for approximately 2,20,800 artisans and sanctioned crore for cluster development. SFURTI stands as a critical pillar in preserving India’s artisanal heritage while enabling rural economic empowerment and inclusive growth.

Conclusion:

In sum, the Budget does more than allocate funds— it sets in motion a paradigm shift toward a resilient, competitive, and opportunity-rich MSME ecosystem. With”Our SmallElands to Make You LARGE” asits rallying call, this comprehensive and visionary policy framework signals not just support but strategic empowerment-ensuring that India’s smallest enterprises become the architects of its largest aspirations.