Chennai: By increasing the investment and turnover limits for MSMEs and launching a new fund of funds for startups with a Central contribution of Rs 10,000 crore, the Budget aims at promoting entrepreneurial spirits. In order to prepare for the AI advancement, it also has proposed a DeepTech Fund of Funds for startups. Recognising MSMEs as an engine of growth, Budget proposed revision in classification criteria for MSMEs. To help them 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. The investment threshold for micro enterprises has been increased from Rs 1 crore to 2.5 crore, for small enterprises from Rs 10 crore to Rs 25 crore and for medium enterprises from Rs 50 crore to Rs 125 crore. The turnover threshold also has been revised from Rs 5 crore to Rs 10 crore for micro, Rs 50 crore to Rs 100 crore for small and Rs 250 crore to Rs 500 crore for medium firms. Further, the credit guarantee cover will be enhanced for micro and small enterprises from Rs 5 crore to Rs 10 crore and for startups from Rs 10 crore to Rs 20 crore, with the guarantee fee being moderated to 1 per cent for loans. Well-run exporter MSMEs, will get term loans up to Rs 20 crore and micro enterprises registered on Udyam portal will get customized credit cards with a Rs 5 lakh limit. In the first year, 10 lakh such cards will be issued. A new Fund of Funds, with expanded scope and a fresh contribution of Rs 10,000 crore will be set up for startups. A new scheme to provide term loans up to Rs 2 crore will be launched, benefitting 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. In the times of AI, a Deep Tech Fund of Funds will also be explored to catalyze the next generation startups as a part of this initiative. A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of Rs 500 crore.
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