As part of measures to boost the MSME sector, the government will lower the turnover threshold for mandatory onboarding on the TReDs platform from ₹500 crore to ₹250 crore. TReDS is an online platform designed to assist Micro, Small, and Medium Enterprises.
The government will introduce a credit guarantee scheme for MSMEs, enabling term loans without the need for collateral or third-party guarantees. Finance Minister Nirmala Sitharaman announced this during her seventh consecutive Union Budget presentation on Tuesday.
Public sector banks will develop in-house capabilities for credit assessment of MSMEs, enhancing their ability to evaluate and support these enterprises. This measure is part of the broader effort to strengthen the MSME sector.
In addition to these initiatives, SIDBI will open 24 new branches to serve MSME clusters, expanding its reach and providing better support to these businesses. This step aims to facilitate growth and development within the sector.
The Budget also allocates ₹2.66 lakh crore for rural development, focusing on enhancing infrastructure and livelihoods in rural areas. This significant investment aims to boost economic growth and improve the quality of life for rural residents.
The Budget includes the launch of a saturation drive under the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN). This initiative aims to improve rural and tribal welfare, ensuring that marginalized communities receive necessary support and resources for their development.
