The government is increasing financial support for small businesses. They are expanding credit facilities for Micro, Small and Medium Enterprises (MSMEs) and raising the limit for Mudra loans to ₹20 lakh.

The Indian government has announced several measures to support Micro, Small, and Medium Enterprises (MSMEs) in the Union Budget 2024.

Key highlights include:

* **Increased Mudra Loan Limit:** The maximum loan amount available under the Mudra scheme has been doubled to ₹20 lakh, aiming to empower startups and boost the MSME ecosystem.
* **Stress Period Support:** The government will provide a new credit mechanism to support MSMEs during periods of financial stress, leveraging a government-promoted fund.
* **TReDS Platform Expansion:** To facilitate easier access to finance, the turnover threshold for mandatory onboarding on the Trade Receivables Discounting System (TReDS) platform has been lowered to ₹250 crore.
* **MSME Irradiation Units:** The budget allocates funding for 50 multi-product irradiation units to support the MSME sector.
* **Export Hubs:** Public-private partnerships will establish export hubs to help MSMEs and traditional artisans tap into international markets.
* **SIDBI Expansion:** To serve more MSMEs, the Small Industries Development Bank of India (SIDBI) will open 24 new branches in the current financial year and expand its reach over the next three years.