Special Report from the Editor’s Desk
Srinagar | February 1, 2025
“This budget is a game-changer for young entrepreneurs,” says a relieved startup founder as she flips through the highlights of Finance Minister Nirmala Sitharaman’s Budget 2025-26. Across India, small business owners, aspiring entrepreneurs, and MSME leaders are hailing the budget as a blueprint for growth.
With easier credit, tax cuts, and massive infrastructure investments, the government has sent a clear message—India is ready to nurture its next generation of business leaders.
“Finally, Easier Access to Capital!” – The Funding Breakthrough
For years, access to affordable credit has been a major hurdle for startups and MSMEs. This budget removes that roadblock with expanded credit limits and direct funding support.
“This ₹10 crore loan guarantee could change everything,” says a tech startup founder. “Now, we can scale without the fear of cash flow issues.”
Here’s what’s changing:
1. MSME credit guarantee limit doubled from ₹5 crore to ₹10 crore, unlocking ₹1.5 lakh crore in new loans.
Startups get a bigger push, with loan limits increased from ₹10 crore to ₹20 crore.
2. Exporting MSMEs can now access term loans up to ₹20 crore.
3. Micro businesses get a ₹5 lakh credit card, with 10 lakh such cards set to be issued in the first year.
3. ₹10,000 crore Fund of Funds for startups, ensuring that capital flows into promising new businesses.
4. First-time entrepreneurs (SC/ST & women) will receive loans up to ₹2 crore, encouraging socially inclusive businesses.
“For the first time, it feels like the government is truly backing small businesses with real financial support,” says a young entrepreneur Perviaz Ali from Pampora South Kashmir.
“Zero Tax Up to ₹12 Lakh? That’s a Lifeline!” – Relief for Small Business Owners
For freelancers, self-employed professionals, and early-stage entrepreneurs, taxation has been a major concern. The 2025 budget wipes out that burden for a large segment of the middle class.
✅ Key tax reforms:
A. No income tax up to ₹12 lakh (₹12.75 lakh for salaried entrepreneurs).
B. Lower tax slabs ensure higher savings across all income groups.
C. TDS limit on rent increased from ₹2.4 lakh to ₹6 lakh, reducing compliance headaches.
D. TDS exemption on senior citizen interest income doubled from ₹50,000 to ₹1 lakh.
“This means we can reinvest in our businesses instead of worrying about taxes eating into our profits,” says a digital marketing entrepreneur Armaan Itoo from Srinagar J&K
“MSMEs Are Finally Getting the Support They Deserve” – Manufacturing & Trade Boost
For India’s 5.7 crore MSMEs, the budget brings a clear roadmap for expansion.
✅ Major MSME benefits:
1. Investment & turnover limits increased by 2.5 times, allowing more businesses to qualify for MSME benefits.
2. National Manufacturing Mission to support small, medium, and large industries.
3. Export reforms with BharatTradeNet (BTN) to digitize trade documentation and make global expansion easier.
4. ₹4 lakh crore investment in the toy and leather industries, creating 22 lakh new jobs.
5. Clean-tech incentives for EV batteries, solar PV cells, and wind turbines.
“The tax cuts and infrastructure boost will push India towards becoming a global manufacturing hub,” says an MSME association leader from Lassipora Industral Hub Pulwama Rashid Ali Mir
“AI, R&D, and Tech Startups Just Got a Huge Boost” – The Digital Revolution
This budget is a win for tech startups and deep-tech innovators.
🚀 Tech & R&D benefits:
a. ₹20,000 crore allocated for deep-tech startups and AI-driven innovation.
b. ₹500 crore for AI-based education programs, ensuring future entrepreneurs are digitally skilled.
c. 50,000 Atal Tinkering Labs to promote STEM learning and innovation.
d. 10,000 new fellowships in IITs & IISc for tech research.
“The government is finally betting on Indian innovation,” says a founder working in AI at Rangrath Srinagar “This investment in R&D will create India’s own Silicon Valley.”
“Rural Businesses Get a Seat at the Table” – Infrastructure & Financial Inclusion
This budget ensures that rural entrepreneurs and gig workers aren’t left behind.
Rural economy highlights:
1. ₹1.5 lakh crore in interest-free state loans for infrastructure and transport projects.
2. PM SVANidhi expansion: ₹30,000 UPI-linked credit cards for street vendors.
3. Gig workers (online platform workers) to get identity cards, registration, and healthcare under PM Jan Arogya Yojana.
“Now even small-town entrepreneurs can think big,” says a businesswoman from Kupwara Mir Shabir. “Better infrastructure means better business.”
“Women Entrepreneurs Are the Future” – Budget 2025 is Betting Big on Them
With a focus on women-led businesses, this budget makes female entrepreneurship a priority.
👩💼 Women-specific schemes:
1. ₹2 crore loans for 5 lakh first-time women entrepreneurs.
2. Target: 70% of Indian women to participate in economic activities.
“This is the push we needed to break barriers,” says a fashion entrepreneur from Rajbagh Srinagar.
Final Verdict: A Budget that Empowers the Next Generation of Entrepreneurs
The Budget 2025-26 is a direct investment in India’s entrepreneurial spirit. It provides:
✅ More Credit & Funding for Startups and MSMEs
✅ Lower Taxes & Simplified Compliance
✅ Stronger Digital & Innovation Ecosystem
✅ Boost for Manufacturing & Exports
✅ Support for Women & Rural Entrepreneurs
“This isn’t just a budget—it’s a roadmap for young entrepreneurs to build their dreams,” says a first-time business owner Naseer Ahmad from Pulwama.
With financial support, infrastructure development, and global trade integration, India’s startup ecosystem is set to explode.
Budget 2025: A Win for India’s Young Entrepreneurs & Small Businesses!
