The proposed scheme for the socio-economic upliftment of urban workers will address structural vulnerabilities in the informal economy.
FinTech BizNews Service
Mumbai, February 2, 2025: Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman presented a historic Union Budget 2025-26 in the Parliament on Saturday.
Prabhat Chaturvedi, CEO, National Urban Co-operative Finance and Development Corporation (NUCFDC), points out: "Union Budget marks a pivotal shift towards proactive growth architecture, reflecting policymakers’ vision for structural transformation. The focused measures aim to foster a robust and inclusive economy and cement the foundation of the Viksit Bharat vision. With a calibrated push to overcome capital access bottlenecks for farmers, MSMEs, and startups, the government is fuelling growth, embedding resilience into the economy’s foundational sectors, and re-engineering a broader base for economic dynamism—critical for sustaining growth in a volatile global environment.
The expansion of credit guarantee covers for MSMEs—from Rs5 crore to Rs10 crore—and for startups—from Rs10 crore to Rs20 crore—along with the revised classification criteria, will unlock greater liquidity and stimulate entrepreneurship. It will enable enterprises to better leverage government schemes, drive job creation, and foster innovation.
The revamp of the PM SVANidhi scheme, with enhanced bank loans and UPI-linked credit cards will integrate street vendors into the formal financial ecosystem seamlessly improve their creditworthiness while catalysing digital financial inclusion at the grassroots level.
The proposed scheme for the socio-economic upliftment of urban workers will address structural vulnerabilities in the informal economy. Its focus on income stability and livelihood sustainability can help formalize segments of the urban workforce, enhance labour productivity, and reduce socio-economic disparities, thus, fostering a long-term resilience.
Enhancing the Kisan Credit Card limit to Rs5 lakh is a welcome move that will bridge the capital access gap, reduce reliance on high-cost informal lending channels, and boost agricultural productivity and rural livelihoods. However, effective implementation, timely disbursal, and robust risk mitigation measures will be critical to preventing over-leverage, particularly among small and marginal farmers.
