Opportune moment for Franchising as Government Budget Brings Major Boost to MSMEs and Youth

It's an opportune moment for franchising as the Finance Minister announced a budget with a strong emphasis on employment, skilling, MSMEs, and the middle class.  "Turning attention to the full year and beyond, in this budget, we particularly focus on employment, skilling, MSMEs, and the middle class," said the Finance Minister Nirmala Sitharaman.

Highlights & Updates Union Budget 2024

Big Boost for MSMEs In another boost for MSMEs, the limit for Mudra loans under the Tarun category will be increased to Rs 20 lakh from the current Rs 10 lakh.

 New Credit Guarantee Scheme for MSMEs In a significant move to support Micro, Small, and Medium Enterprises (MSMEs), the Finance Minister announced the introduction of a credit guarantee scheme. This scheme aims to facilitate term loans for MSMEs by mitigating credit risks. A self-financing guarantee fund will provide each applicant with coverage of up to Rs 100 crore, although the loan amounts may be larger.

Sustained Efforts on 9 Priorities The budget outlines sustained efforts across nine key priorities to generate ample opportunities for all:

1. Productivity and Resilience in Agriculture
2. Employment and Skilling
3. Inclusive Human Resource Development and Social Justice
4. Manufacturing and Services
5. Urban Development
6. Energy Security
7. Infrastructure
8. Innovation, Research, and Development
9. Next Generation Reforms

Scheme for 4.1 Crore Youth The Finance Minister also announced a comprehensive package for the youth. The Prime Minister's package of five schemes and initiatives aims to facilitate employment, skilling, and other opportunities for 4.1 crore youth over five years, with a central outlay of Rs 2 lakh. "I am happy to announce the Prime Minister's package of 5 schemes and initiatives to facilitate employment, skilling, and other opportunities for 4.1 crore youth over 5 years with a central outlay of Rs 2 lakh," said the Finance Minister.