Reinforces govt commitment to start-ups, MSME sector: Investors

Investors have termed the Union Budget as progressive and growth-oriented that reinforces government’s commitment to start-ups and micro small and medium enterprises (MSME) sector.

Steps like doubling credit guarantee cover for the MSME, enhancing their investment and turnover limits by 2.5 times and 2 times, respectively, to boost their growth and operational efficiency and introducing customised credit cards for them will stimulate economic growth, says the industry.

The Budget 2025-26 focuses efforts of the Union Government to secure inclusive development, uplift household sentiment and enhance the power of India’s middle class, stated Rajiv Aggarwal, president, Baddi Barotiwala Nalagarh Industries Association (BBNIA).

He added “In India, MSMEs contribute 36 per cent in manufacturing and 5.7 crore MSMEs are giving employment to 7.5 crore people. Government focus on MSME development will lead to generation of more employment and support to industry.”

Terming the budget as revolutionary, the BBNIA said the Budget focuses efforts of the Union Government to secure inclusive development, uplift household sentiment and enhance the power of India’s middle class. “These announcements are aimed at stimulating economic expansion, give push to small businesses, enhance infrastructure, improve governance and promote sustainable development across multiple sectors,” said YS Guleria, gen secy, BBNIA.

“This Budget takes significant steps towards strengthening the economy by prioritising MSMEs, tourism and agriculture. The support for small businesses through relaxed credit norms and tax benefits will encourage entrepreneurship and industrial growth. The increased focus on tourism infrastructure is a welcome move, as it will enhance the sector’s potential to generate employment and revenue,” said Deepan Garg, Vice Chairman, CII Himachal Pradesh and Managing Director, Wellpack Industries.

“This will enhance accessibility to crucial life-saving drugs which are slated to become more affordable,” said Rajesh Gupta, president, Himachal Drugs Manufacturers Association. Dr Gupta also emphasised that measures like customs duty relief will lead to lower drug costs. Announcement of duty relief for bulk drugs used in manufacturing these medicines will further boost domestic bulk drug manufacturing.