Union Budget 2025: Boost For First-Time Women Entrepreneurs And Other Developments

In her presentation of the Union Budget 2025, Union Finance Minister Nirmala Sitharaman placed a significant emphasis on women’s empowerment, outlining a series of initiatives aimed at improving their access to credit, enhancing entrepreneurial opportunities, and boosting nutritional support. The budget, which prioritises the welfare of the poor, youth, farmers, and women, aims to foster balanced growth across all sectors.

Union Budget 2025: What’s in Store for Women’s Growth and Welfare

Saksham Anganwadi and Poshan 2.0 for Nutritional Support

One of the key announcements for women in the budget is the launch of the Saksham Anganwadi and Poshan 2.0 programs. These initiatives aim to provide essential nutritional support to 8 crore children and women, particularly focusing on improving health outcomes. 

The finance minister also highlighted the government's commitment to improving credit access for women entrepreneurs, noting that Rs 2 crore term loans will be made available to 5 lakh first-time women entrepreneurs, particularly from Scheduled Castes (SC) and Scheduled Tribes (ST).

Customised Credit Cards for Women Entrepreneurs

Further enhancing support for women entrepreneurs, the budget proposes a customized credit card with a Rs 5 lakh limit for micro-enterprises registered on the Udyam Portal. This move is expected to benefit women in microenterprises, providing them with the financial tools needed to expand their businesses. Sitharaman announced that a target of 10 lakh cards would be issued in the first year, with a broader aim of empowering women in the informal sector.

Support for Women-Led MSMEs

The budget also highlighted the broader initiative of enhancing credit access for micro, small, and medium enterprises (MSMEs), which form the backbone of the economy. The classification criteria for MSMEs will be relaxed, with enhanced investment and turnover limits set to allow these enterprises to grow and create more job opportunities. Women-led MSMEs stand to benefit from these changes, as the government is committed to fostering their growth with better access to capital and technological upgradation.

Increased Credit Guarantee for Small Enterprises

In an effort to further support small enterprises, the budget proposes an increase in credit guarantee for micro and small enterprises, raising the cover from Rs 5 crore to Rs 10 crore. This will provide an additional Rs 1.5 lakh crore in credit over the next five years. For startups, the guarantee cover will be expanded to Rs 20 crore, lowering the fee to 1% for loans in 27 key sectors, which are crucial for India’s self-reliance.

Tax Reforms and Relief for Taxpayers

One of the major highlights is the announcement that no income tax will be levied on individuals earning up to Rs 12 lakh. Additionally, Sitharaman has extended the time for filing tax returns from two years to four years, offering taxpayers a longer window to comply with tax regulations. Furthermore, the government has decided to focus on the rationalisation of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). These changes are set to reduce the compliance burden, simplifying the tax collection process for both individuals and businesses. By easing the paperwork and bureaucratic hurdles, the government aims to create a more efficient and taxpayer-friendly system, making it easier for individuals to manage their tax responsibilities.