Union Budget 2025: FM Sitharaman Announces Rs 10,000 Crore Fund of Funds For MSMEs And Startups

New Delhi,  Feb 1 (KNN) Finance Minister Nirmala Sitharaman unveiled two major financial initiatives for the micro, small and medium enterprises (MSMEs) sector during her Union Budget 2025 speech. 

The government will establish a new fund of funds with an allocation of Rs 10 crore, featuring an expanded scope compared to existing programs. 

The Finance Minister emphasized that this fund would strengthen the nation's entrepreneurial ecosystem.

In addition to the fund of funds, Sitharaman announced a targeted lending scheme specifically designed to support underrepresented groups in business. 

The program will benefit five lakh first-time entrepreneurs, with a particular focus on women and individuals from Scheduled Castes and Scheduled Tribes (SC/ST) communities. 

Under this initiative, eligible entrepreneurs can access term loans of up to Rs 2 crore over the next five years, marking a substantial commitment to inclusive economic growth.

These announcements reflect the government's continued emphasis on promoting entrepreneurship while addressing historical economic disparities. 

The dual approach of establishing a broader fund while simultaneously creating targeted support for specific demographics suggests a comprehensive strategy to stimulate economic development across various sectors of society.

(KNN Bureau)