Union Minister for Finance Nirmala Sitharaman on Saturday announced that the possibility of a ‘Deep Tech Fund of Funds’ will be explored to catalyse the next generation start ups.
She also announced that customised Credit Cards with a five lakh limit for micro enterprises registered on Udyam portal will be introduced. She further remarked that in the first year, 10 lakh such cards will be issued.
The Union Budget 2025-26 sees the next five years as a unique opportunity to realise ‘Sabka Vikas’, stimulating balanced growth of all regions and achieving the goal of Viksit Bharat, she said.
The Union Budget defines MSMEs as one of the powerful engines for the story of development and the proposed development measures support MSMEs to accelerate growth and secure inclusive development.
While presenting the Union Budget 2025-26 in Parliament, Sitharaman said, “To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.”
Mrs Sitharaman said, “The Alternate Investment Funds (AIFs) for startups have received commitments of more than 91,000 crore. These are supported by the Fund of Funds set up with a Government contribution of 10,000 crore.” She announced that now, a new Fund of Funds, with expanded scope and a fresh contribution of another 10,000 crore will be set up.
She announced that a new scheme will be launched for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. She informed that this will provide term loans up to 2 crore during the next 5 years.
In her speech she said, “The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organized.”
Mrs Sitharaman informed that a Deep Tech Fund of Funds will also be explored to catalyze the next generation startups as a part of this initiative.
She stated that an Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance will be set up. She also informed that the Mission will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.