MSME Sector Gets Boost with Mutual Credit Guarantee Scheme & Other Initiatives

The Union Budget 2025 emphasizes economic growth, energy security, education, healthcare, and agricultural development. The Finance Minister outlined crucial policies to boost global competitiveness, strengthen financial security, and enhance food security in rural India. Key highlights include support for MSMEs, full exemption on Customs Duties for 25 critical minerals, expansion of insurance sector investment limits, and a new agricultural scheme to uplift low-yield districts.

Key Highlights

Energy and Critical Minerals

• Government prioritizes energy security due to increased industrial expansion and data center demands.
• MSME Loan Guarantee scheme now includes critical minerals.
• MoUs signed with multiple countries for the import of critical minerals.
• Full exemption of Customs Duties on 25 critical minerals.
• Benefiting sectors: space, defence, telecommunications, high-tech electronics, nuclear energy, and renewable energy.

Education and Healthcare

• More universities to be included under student loan support programs for improved accessibility to higher education.
• Insurance sector cap increased from 74% to 100%, ensuring broader participation with financial safeguards.

Agriculture – PM Dhan Dhaanya Krishi Yojana

• Launched to enhance agricultural productivity in 100 low-yield districts.
• Expected to benefit 1.7 crore farmers.
• Focus on improving irrigation facilities and providing short-term and long-term credit.
• Aims to strengthen food security and uplift farmers.