Startup Funding
How is the government helping MSMEs and startups grow in India through recent policy changes?
The government has enhanced loan guarantees for MSMEs (up to 10 crore rupees) and startups (up to 20 crore rupees), which will unlock an additional 1.5 trillion rupees in credit over five years. The definition of micro, small, and medium enterprises has been revised with higher investment and turnover limits, allowing businesses to expand while retaining MSME benefits. Previously, businesses had to remain small to keep government subsidies and perks. For startups, the government has added 10,000 crores to the existing fund and is using a 'fund of funds' model to spread investment risk across portfolios, similar to successful models in the US and China.
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Think School
17:01 - 20:58
How is the Indian government supporting MSMEs and startups through recent policy changes?
The Indian government has enhanced support for MSMEs and startups, which contribute 29% of GDP and 50% of exports. For MSMEs, loan guarantee limits have increased from 5 to 10 crore rupees, while startups can now access up to 20 crore rupees (up from 10 crore). Additionally, the government has revised MSME definitions, allowing businesses to grow larger while retaining MSME benefits. The investment limit for micro enterprises has increased to 2.5 crore rupees with turnover up to 10 crore, enabling small businesses to expand without losing access to subsidies, tax perks, and low-interest loans.
Watch clip answer (03:59m)Think School
17:01 - 21:01
What are the new loan guarantee limits for MSMEs and startups in India's 2025 Union Budget?
The 2025 Union Budget has significantly increased loan guarantee limits for both MSMEs and startups in India. MSMEs can now access loan guarantees of up to 10 crore rupees, doubled from the previous 5 crore limit. Similarly, startups can now receive guarantees up to 20 crore rupees, up from the previous 10 crore limit. These government-backed guarantees make banks more willing to lend to these sectors, as the government covers potential losses. This initiative is expected to unlock an additional 1.5 trillion rupees in credit over the next five years, benefiting India's 4.5 crore MSMEs.
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Think School
17:13 - 18:15
How did Ripan secure funding for his startup, Hope and Innovations?
Ripan secured funding by applying to Oil India's startup program called SNEH. He pitched his idea, which focused on solar-powered vehicles for sustainable mobility, in Bubenasur in 2023. His innovative concept was successfully funded by Oil India, enabling him to develop prototypes designed to enhance operations in oil fields. This partnership exemplifies how energy sector companies are supporting green technology initiatives through dedicated startup programs, fostering innovation in sustainable transportation solutions.
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WION
02:07 - 02:19
What were the key highlights from India Energy Week 2024?
India Energy Week 2024, which concluded on February 14th at the Yashobhoomi center in New Delhi, featured important strategic agreements aimed at enhancing energy security and promoting sustainable solutions. A notable highlight was the introduction of an innovative solar-powered vehicle by Ripan, founder of Hope and Innovations. Ripan's eco-friendly mobility solution received support from Oil India's startup program, showcasing how corporate backing is helping advance green technology in India's transport sector.
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00:48 - 00:49