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Updated 17:58 IST, February 1st 2025

From Term Loan To Credit Guarantee For MSMEs: What's For Women, Youth In Budget 2025

With announcements like term loan for women to supporting MSMEs, Gig workers, let's take a look at big announcements for women and youth in Budget 2025.

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Union Budget 2025
A look at big announcements for women, youth in Union Budget 2025 | Image: Republic Media Network

New Delhi: Union Finance Minister Nirmala Sitharaman presented her 8th consecutive Budget on Saturday and announced a major tax relief for the middle class with no income tax upto Rs 12 Lakhs Per Annum in the new tax regime.  The Finance Minister said that this budget is for poor, youth, annadata and women. Sitharaman made a host of announcement for building infrastructure, new airports, supporting the MSMEs, education, businesses, women, youth and the major one being the reduction in the income tax. As Prime Minister called today's budget as one which will fulfil dreams of every Indian, let's breakdown what's there for women, youth in Budget 2025                  

Union Budget 2025 | What's for women, youth 

  • Finance Minister Sitharaman announced Rs 2 crore term loan for 5 lakh first time women SC, ST entrepreneurs.
  • Sitharaman proposed that manufacturing mission will be set up for SME and large industries.
  • The credit guarantee cover will be doubled to Rs 20 crore, guarantee fee moderated to 1 per cent.
  • The government said that benefits to startups will continue for 5 years since inception.
  • Additional infrastructure in IITs will increase number of students.
  • Credit guarantees cover to be raised for MSMEs to Rs 10 crore from Rs 5 crore.
  • Centre of Excellence in artificial intelligence to be set up with Rs 500 crore.
  • Government made a big announcement for Gig Workers, keeping in mind the New Age Economy as for the first time, Gig Workers will be registered on the e-Shram portal and then they will get the benefit of health services.

Force multiplier for India's development journey, says PM Modi on Budget 2025

Prime Minister Narendra Modi said that the Union Budget 2025 as a "Force Multiplier" for India's development journey, describing it as a "budget of aspirations" for 140 crore Indians. He emphasized that this budget would fulfill the dreams of the people, with a strong focus on opening up several sectors for the youth.

"This is the budget of the aspirations of 140 crore Indians, this is a budget that fulfills the dreams of every Indian," PM Modi stated.

He further highlighted that the budget aims to boost economic participation among the common citizens. "This is a budget which fulfills the dreams of our people. We have opened many sectors for the youth. Common citizens are going to drive the mission of Viksit Bharat. This budget is a force multiplier. This budget will increase savings, investment, consumption, and growth. I congratulate Smt Nirmala Sitharaman and her entire team for coming up with a people-centric budget," he added.

PM Modi also pointed out that, unlike previous budgets focused on filling government coffers, this one is designed to benefit citizens directly.

"Usually the focus of the budget is on how the government treasury will be filled, but this budget is exactly the opposite of that. How will this budget fill the pockets of the citizens of the country, how will the savings of the citizens of the country increase and how will the citizens of the country become partners in development... this budget lays a very strong foundation for this," PM Modi remarked.

PM Modi also praised the reforms in the nuclear energy sector. "Encouraging the private sector in Nuclear Energy is historic. It will ensure a big contribution of Civil Nuclear Energy in the development of the country," he said.

The Prime Minister also stressed the importance of preserving India's heritage. "Today the country is moving ahead with the mantra of 'development as well as heritage'. Very important and concrete steps have been taken for this in this budget. In this budget, 'Gyan Bharat Mission' has been started for the preservation of one crore manuscripts," he added. 

PM Modi highlighted the granting of infrastructure status to shipbuilding, which he said would promote domestic production, support self-reliance, create jobs, and unlock the potential for tourism growth.

"The designation of infrastructure status will promote the construction of large ships in the country. Additionally, it will accelerate Atma Nirbhar initiatives. Shipbuilding is a sector that provides significant employment opportunities. Furthermore, the country has vast potential for tourism development," he noted.

Additionally, he announced a new scheme providing loans up to Rs 2 crore without guarantees for SC, ST, and women entrepreneurs. "A scheme of providing loans up to Rs 2 crore without guarantee has also been introduced for SC, ST, and women of the country who want to become new entrepreneurs," he said.

PM Modi underlining the inclusion of Gig Workers in the budget explained, “In this budget, a big announcement has been made for Gig Workers, keeping in mind the New Age Economy. For the first time, Gig Workers will be registered on the e-Shram portal and then they will get the benefit of health services.”

How common man can save in income tax | Source: Republic Media Network  

The Prime Minister also hailed the announcement of tax relief for middle-class citizens. "In this budget, income up to Rs 12 lakh per annum has been made tax-free. For all income groups, taxes have been reduced. It will hugely benefit our middle class. Similarly, it will be an opportunity for the people who have recently joined the workforce," PM Modi added.

With inputs from ANI

Published 15:52 IST, February 1st 2025