In the Union Budget 2025, India's finance minister, Nirmala Sitharaman, announced considerable funding for business owners, particularly women and those from SC/ST categories. This is a new scheme to facilitate inclusive economic growth, which gives term loans of up to ₹2 crore to first-time borrowers from these categories.
In her address, FM Sitharaman focused on the 'Viksit Bharat'-Vision of Developed India-free of poverty, educated, a healthy society with high economic prosperity-that marks the eighth Union Budget presentation and the first full budget under the Modi 3.0 government.
"For 500,000 first-time entrepreneurs, including women, ST and SCs, a new scheme, to be launched, to provide term loans up to ₹2 crore loan during the next 5 years," FM said. This will pave the way to channel resources towards economic change in these groups to begin unlocking the historic barriers the financing landscape posed for these communities to grow.
Indeed, economic disparity still persists in the country with slow progress in reducing the gap in gender. Women entrepreneurs face more than just limited access to funding; they are also cut off from major professional networks. This scheme can bridge the gap between the gender disparity and can help the women entrepreneurs to grow and establish their business.
The government aims to provide financial support directed at addressing the issues affecting the status of women and the SC/ST minorities, which is another measure in this direction designed within a general framework for concessional funding of ₹2 crore loan which is announced by them in the Union Budget of 2025. The scheme would reduce the barriers to financing available to promote the growth of enterprises, where self-employment could contribute considerably to India's economic growth.
In conclusion, this selection reflects an earnest commitment toward providing equal economic growth and fostering participation of deprived communities in the entrepreneurship of the nation. The availability of additional financing will open doors for SC/ST entrepreneurs to expand their business, increase employment, and thereby contribute toward overall economic development of the nation.
Catch all the Budget News , Business News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.