NEW DELHI — Finance Minister Nirmala Sitharaman identified agriculture as
"the first engine" for India’s development journey with the
announcement of a slew of measures in Budget 2025-26 to raise farm production
and increase the incomes of farmers.
She said that a Makhana Board would be set up in Bihar,
to improve the production, processing, value addition, and marketing of makhana
(fox nut) as well as support the people engaged in these activities to be
organised into Farmer Producer Organisations (FPOs). The Board will provide
handholding and training support to makhana farmers and also work to ensure
they receive the benefits of all relevant government schemes, she added.
The Minister also stated that a National Mission on High
Yielding Seeds will be launched with an aim to strengthen the research
ecosystem, targeted development and propagation of seeds with high yield, pest
resistance and climate resilience, and commercial availability of more than 100
seed varieties released since July 2024.
Under the Prime Minister Krishi Yojana, a new initiative
inspired by the success of the Aspirational District Programme, the government
will launch an agricultural district programme in partnership with states. This
will target 100 districts with low productivity, moderate crop intensity, and
below-average credit parameters. The initiative is expected to benefit 1.7
crore farmers.
She further stated that to provide conservation support
to both public and private sectors for genetic resources and ensure future food
and nutritional security, a second Gene Bank with 10 lakh germplasm lines will
be set up.
The Finance Minister also announced that the government
will launch a 6-year mission aimed at achieving self-reliance in pulses, with a
special focus on tur and masoor. Central agencies such as the NAFED and the
NCCF will be prepared to procure these three pulses from farmers who register
with the agencies and enter into agreements. This initiative will run over the
next four years, ensuring support and guaranteed procurement for farmers.
Announcing the "Mission for Cotton
Productivity", FM Sitharaman highlighted that the five-year mission will
facilitate significant improvements in the productivity and sustainability of
cotton farming, and promote extra-long-staple cotton varieties. She said the
mission will benefit lakhs of cotton-growing farmers as the best of science
& technology support will be provided to farmers. Aligned with the
government’s integrated 5F vision for the textile sector, the Minister remarked
that the mission will help increase the incomes of the farmers as well as
ensure a steady supply of quality cotton for rejuvenating India’s traditional
textile sector.
Noting the importance of Kisan Credit Cards (KCC) in
facilitating short-term loans for around 7.7 crore farmers, fishermen, and
dairy farmers, the Minister announced the enhancement of loan limit under the
Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh for loans taken
through the KCC.
Besides, FM Sitharaman announced the setting up of a urea
plant with an annual capacity of 12.7 lakh metric tons at Namrup in Assam.
This, she said will further augment urea supply and help to achieve
Atmanirbharta in urea production, along with the recently reopened three
dormant urea plants in the Eastern region.
Union Budget: Key
measures to bolster 1 crore MSMEs, 1.59 lakh startups
Union Finance Minister Nirmala Sitharaman on Saturday
announced significant measures to bolster more than 1 crore registered micro,
small, and medium enterprises (MSMEs), employing 7.5 crore people and
generating 36 per cent of the country’s manufacturing.
With their quality products, these MSMEs are responsible
for 45 per cent of our exports, the Finance Minister said while presenting the
Budget 2025-26.
To help them achieve higher efficiencies of scale,
technological upgradation and better access to capital, the investment and
turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2
times, respectively.
"This will give them the confidence to grow and
generate employment for our youth," said the Finance Minister.
To improve access to credit, the credit guarantee cover
will be enhanced. For micro and small enterprises, it will be enhanced from Rs
5 crore to 10 crore, leading to additional credit of Rs 1.5 lakh crore in the
next 5 years.
"For startups, it will be increased from Rs 10 crore
to Rs 20 crore, with the guarantee fee being moderated to 1 per cent for loans
in 27 focus sectors important for Atmanirbhar Bharat," FM Sitharaman said,
adding that for well-run exporter MSMEs, credit availability with guarantee
cover will be for term loans up to Rs 20 crore.
“We will introduce customised credit cards with a Rs 5
lakh limit for micro-enterprises registered on Udyam portal. In the first year,
10 lakh such cards will be issued," she said.
The Alternate Investment Funds (AIFs) for startups have
received commitments of more than Rs 91,000 crore. These are supported by the
Fund of Funds, set up with a government contribution of Rs 10,000 crore.
Now, a new Fund of Funds, with an expanded scope and a
fresh contribution of another Rs 10,000 crore will be set up.
A new scheme will be launched for 5 lakh women, Scheduled
Castes and Scheduled Tribes first-time entrepreneurs. This will provide term
loans up to Rs 2 crore during the next 5 years.
The scheme will incorporate lessons from the successful
Stand-Up India scheme. Online capacity building for entrepreneurship and
managerial skills will also be organised, the Finance Minister said.
To promote employment and entrepreneurship opportunities
in labour-intensive sectors, "our government will undertake specific policy
and facilitation measures", FM Sitharaman added.
With more than 1.59 lakh startups recognised by the
Department for Promotion of Industry and Internal Trade (DPIIT) as of January
15, India has firmly established itself as the third-largest startup ecosystem
in the world.
