Credit Guarantee Schemes

Q: What's new in startup financing?

The Credit Guarantee Startup Scheme (CGSS) now offers ₹20 crore collateral-free loans (up from ₹10 crore) with a reduced 1% annual fee for 27 strategic sectors like renewable energy, pharma, and IT services11. This helps startups scale operations without asset pledges.

Q: How does the Export MSME scheme work?

Export-oriented MSMEs can get loans up to ₹20 crore with government guarantees covering 65-80% of defaults. This helps businesses expand export capacity and substitute imports.

Funding Support

Q: What is the Fund of Funds for Startups?

A new ₹10,000 crore fund will invest in venture capital firms, focusing on:

• Women-led businesses (25% allocation)

• Climate tech solutions (25% allocation)

• IPO preparation and acquisition financing.

Q: What is the SWAMIH Fund 2?

This ₹32,000 crore real estate fund completes stalled housing projects, ensuring home buyers get possession of delayed properties.

Rural & Agricultural Support

Q: How does the Gramin Credit Score help?

Uses non-traditional data (e.g., chit fund participation) to generate credit scores for rural entrepreneurs without formal banking history.

Q: What's new in Kisan Credit Cards (KCC)?

Now covers fisheries and animal husbandry with enhanced limits up to ₹3 lakh. 2.5 crore farmers have already benefited.

Simplified Banking

Q: What is ME-Card?

A customized credit card offering collateral-free loans up to ₹1 crore for micro-enterprises, with 48-hour approval.

Q: How is KYC simplified?

Digital KYC now accepts Aadhaar-based authentication and video verification, reducing paperwork for account opening.

Sector-Specific Support

Q: What is the Mudra Scheme for Home Stays?

Offers loans up to ₹10 lakh at 7% interest to develop rural homestays, promoting tourism.

Q: What's changed in insurance FDI?

100% foreign ownership allowed in insurance companies (up from 74%), attracting global players to expand coverage.

Social Initiatives

Q: What is Stand Up India?

Provides ₹10 lakh-1 crore loans to SC/ST entrepreneurs and women for greenfield projects in manufacturing/services.

Q: What tax relief exists for NPS Vatsalya?

Contributions to this pension scheme for informal workers now qualify for ₹50,000 annual tax deduction under Section 80C.

Other Initiatives

Q.  How has the government provided tax relief in this budget?

• The nil tax slab threshold has been raised to ₹12 lakh per annum, offering significant relief to middle-class taxpayers.

• The maximum tax rate of 30% now applies to incomes of ₹24 lakh and above under the new tax regime.

Q. What is the projected GDP growth for 2025-26?

• The government expects nominal GDP growth of 10.1% for the fiscal year 2025-26.

Q. What is the estimated fiscal deficit for the upcoming year?

• The fiscal deficit is projected at 4.4% of GDP, reduced from 4.8% in the current year.

Q. What measures have been announced for the agriculture sector?

• A six-year mission has been launched to boost pulses production, focusing on pigeon peas, black matpe, and red lentils.

• A five-year mission aims to increase cotton production, especially extra-long staple cotton, through research and development initiatives.

Q.How is the government promoting manufacturing and investment?

• A National Manufacturing Mission has been launched to strengthen the 'Make in India' initiative.

• The FDI limit in the insurance sector has been raised to 100%, attracting more foreign investment.

Q. How much is allocated for infrastructure development?

• The budget sets aside ₹11.2 trillion for capital expenditure, up from the revised ₹10.18 trillion in the current fiscal year.

Q. What support is available for startups and small businesses?

• The credit guarantee cover for SMEs has been increased to ₹10 crore, easing access to credit.

• A ₹10,000 crore Fund of Funds has been introduced to support startups, fostering innovation and entrepreneurship.

Q. What steps are being taken for employment and skill development?

• Five national skilling centers will be established to create a highly skilled workforce for the manufacturing sector.

• Special provisions are included to formalize gig economy workers, improving their access to healthcare and social security.

Q.What investments are planned for energy and sustainability?

• A Nuclear Energy Mission has been introduced to achieve 100 GW of nuclear power by 2047, supporting sustainable energy development.

Q. What is the overall goal of Budget 2025-26?

• The budget focuses on boosting the spending power of the middle class, promoting inclusive growth, enhancing infrastructure and investment, and supporting agriculture, startups, and employment generation.