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.