The Positive Influence of Union Budget 2024-25 on Indian Startups

Credit Guarantee Schemes for MSMEs: In order to facilitate the term loans for MSMEs in the manufacturing sector on purchasing machinery and equipment, a new revolutionary scheme will be launched with no warranty and security. This significant funding scheme for MSMEs will offer assurances and guarantee cover-up up to Rs.100 crore. Also, the government is mapping to provide an internship programs and courses for one crore young people of India in top multinational companies in next five years. This super initiative intends to enable the youth to power up their industry-demanding expertise which can help them in their future entrepreneurial journey. Sitharaman also informed that SIDBI – Small industries development bank of India is set to inaugurate 24 new branches to serves as a MSME clusters where the MSMEs can get enhanced funding and external loans to kick-start & bolster their new ventures.

Naveen Tewari, Founder & CEO of InMobi Group, responds to the Union Budget-

“I wholeheartedly congratulate the government on presenting a visionary and forward-looking budget. The comprehensive focus on MSMEs, technology innovation, and skilling programs reflects a deep understanding of the current and future needs of our nation. The last ten years, we focused on building infrastructure and ensuring last mile connectivity. The next ten have to be about improving access, skilling and supporting small businesses. The public investment in DPI and incentivizing states to digitalize mark significant strides towards becoming a knowledge economy and ushering in India’s techade. Additionally, the improved data governance measures and easing of Safe Harbor and transfer pricing assessments will enhance ease of doing business, fostering a robust ecosystem for innovation and growth.

We particularly commend the focus on women, youth, farmers, and the underprivileged, aligning with our mission to leverage technology for inclusive development and making it a force for good. This budget not only addresses immediate economic challenges but also sets a strong foundation for sustainable development, making India a global leader in technology and digital transformation. We at InMobi, are truly excited about the opportunities this budget presents and are committed to leveraging these initiatives and supporting the government to drive growth, innovation, and inclusive development leaving the planet better than we found it.”

Ritesh Khandelwal, Co-Founder, ZYOD contributes, “The focus on manufacturing and MSMEs in this year's budget is a welcome development. The Prime Minister’s package of 5 schemes, especially the ‘job creation in manufacturing’ and ‘Credit Guarantee Scheme for MSMEs in the manufacturing sector’, promises significant growth for the sector. The increased Mudra loan limit from ₹10 lakh to ₹20 lakh and the revised TReDS onboarding threshold will significantly benefit MSMEs. Additionally, credit guarantee schemes and mechanisms for facilitating bank credit during stress periods are crucial steps forward. These measures will provide much-needed support, ensuring business continuity and fostering long-term growth. Notably, the ability to secure collateral-free term loans for machinery and equipment empowers MSMEs to invest in innovation and expansion. We are confident these initiatives will contribute significantly to the resurgence of the manufacturing sector”.