Finance Minister Announces Rs 5 Lakh Credit Limit for Micro Enterprises Registered on Udyam in Union Budget 2025-26

New Delhi, Feb 1 (KNN) Finance Minister Nirmala Sitharaman announced in the Union Budget that micro enterprises registered on the Udyam portal will be eligible for a credit limit of up to Rs 5 lakh.

This initiative aims to enhance financial accessibility for small businesses, facilitating their growth and contribution to the economy.

The Udyam portal serves as an official platform for MSME registration, streamlining processes and providing various benefits to registered enterprises.

By offering a substantial credit limit, the government seeks to empower micro enterprises, enabling them to expand operations, invest in new technologies, and improve competitiveness.

The MSME sector is a cornerstone of India's economy, comprising approximately 5.7 crore enterprises and employing around 7 crore individuals.

Notably, MSMEs contribute to 45% of the country's total exports, underscoring their vital role in driving economic growth and positioning India in the global market.

This budgetary measure reflects the government's commitment to strengthening the MSME sector, recognising its potential to foster innovation, generate employment, and boost exports.

By providing increased financial support, the initiative is expected to stimulate economic activity and promote sustainable development across the nation.

(KNN Bureau)