Easy Credit Access To MSMEs Hailed

Vijayawada: The Union Budget proposals for 2025-26 have brought cheers among MSME entrepreneurs with several industrialists saying that they are the right step to strengthen the MSMEs and the startup ecosystem.

They welcomed the announcements by FM Nirmala Sitharaman on increasing the turnover limit to classify as an MSME and establishing a Fund of Funds to help startups/early stage companies to overcome working capital and funding problems for achieving commercialisation.

AP Chambers of Commerce & Industry Federation (AP Chambers) president Potluri Bhaskar Rao told Bizz Buzz that the proposals give a credit boost to MSMEs, enhancing investment and turnover limits of MSME categories by 2.5 and 2 times, increasing the credit guarantee cover to 10 cr are welcome and support MSMEs to achieve higher efficiency of scale. Introducing credit cards to micro enterprises is also a very positive initiation to support the industry.

He, however, described as a big disappointment that no major support announcements for AP.

While hailing the announcements to incentivise the MSMEs, AP CII Chairman Dr V Muralikrishna said focus has been laid to support the middle class and increase exports and employment through MSMEs. He said increasing the turnover limit from Rs.5 crore to Rs.10 crore will provide the incentives to the MSME entrepreneurs. The measures will help increase higher efficiency levels. However, he felt that though they expected major announcements for AP like launching Metro Rail projects in Vijayawada and Visakhapatnam, nothing was mentioned and hoped that in future that will be known.