Impact of the Union Budget 2025-26 on Corporates and MSMEs

The Union Budget 2025-26 introduces several key measures aimed at strengthening the corporate sector and empowering MSMEs, ensuring economic growth and competitiveness.

One of the major highlights is the enhanced credit access for MSMEs, with the credit guarantee cover doubling to ₹10 crore, facilitating easier funding for small businesses. Additionally, the MSME classification criteria have been revised, increasing investment and turnover limits, enabling businesses to scale effectively.

Tax reforms bring relief, with income up to ₹12 lakh now tax-free under the new tax regime, and TDS limits on interest and rent significantly increased. These changes aim to improve cash flow for businesses and individuals.

For startups, a ₹10,000 crore Fund of Funds has been introduced to support innovation and expansion. Additionally, sector-specific initiatives, including an Export Promotion Mission and targeted support for labour-intensive industries, will help MSMEs integrate into global value chains.

The government has also announced a ₹250 billion Maritime Development Fund, aimed at boosting India's shipbuilding and repair industry, further strengthening infrastructure and trade.

Overall, the budget provides financial relief, credit support, and growth opportunities for corporates and MSMEs. By addressing capital access, taxation, and infrastructure, it fosters a business-friendly environment, paving the way for sustainable development and economic resilience.