Set To Propel Transformative Reforms, Says Fapcci President

Increase in credit limit for MSMEs from Rs 5 crore to Rs 10 crore and for startups to Rs 10 crore and increase in term loan to Rs.20 crores for well-run MSME exporters, will certainly strengthen the investment base - K Mallikharjuna Rao, president, Fapcci

Federation of Andhra Pradesh Chambers of Commerce and Industry (Fappci) president K. Mallikharjuna Rao the Union Budget of 2025-26 is formulated to initiate transformative reforms across various domains, including- taxation, power, urban development, mining, financial sector.

He specially appreciated the measures announced for the MSME sector and high priority to promotion of exports of the country. He said that the increase in credit limit for MSMEs from Rs 5 crore to Rs 10 crore and for startups to Rs 10 crore and increase in term loan to Rs.20 crores for well-run MSME exporters will certainly strengthen the investment base and more working capital for these sectors. However, he said these loans are sanctioned as per the Ease of Doing Business Policy of the government so that they could reap the complete benefit of the budget proposals.

Rao, who is popular as Malik in business circles, hailed the proposal of setting up five national Centers of excellence for skilling to equip youth. One more encouraging factor is that the budget proposal to have global skilling partnerships and setting up of the Centre of Excellence for AI in Education will also enhance the skills of unemployed women.

Referring to the tax benefits such as no income tax till Rs.12.75 lakh of income for salaries class under the new regime, he said these measures will substantially reduce access of the middle class and will boost household consumption, savings and investment.

When contacted, Fapcci vice president A. Satynarayana said the Union Budget proposals for 2025-26 aims to strike a balance between economic growth and fiscal discipline. He said the reforms proposed are very well designed and will surely enhance India’s competitiveness, attract global investment, and support growth across multiple sectors.

Satyanarayana said that the proposal under the clean energy transition announcement of the nuclear energy mission is a very important initiative which is aiming to develop at least 100 gigawatts (GW) of nuclear energy by 2047. He added that the announcement of the National Manufacturing Mission, along with enhanced PLI (production linked incentive) schemes and tariff rationalization for critical minerals, inverted duty structure, and focus on capital goods imports will support the rapid growth of the entire manufacturing ecosystem.