Addressing the issues of credit access and skilling, much prevalent in the sector, saw significant reforms in the budget today. The revised criteria for classification and investment will encourage the businesses to scale up without losing incentives. The increase in credit guarantee cover, with additional schemes for 2-crore term loan loan for first-time women and customised credit cards till 5 lakh limit, is a major boost for the MSME sector. The expansion of the Fund of Funds for Startups with an additional INR 10,000 crore will encourage innovation and entrepreneurship at scale.
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