In the Union Budget 2025, India’s Finance Minister Nirmala Sitharaman announced a significant initiative aimed at supporting business owners, especially women and those from SC/ST categories. The new scheme will provide term loans of up to ₹2 crore for first-time borrowers from these groups, promoting inclusive economic growth and helping bridge the financial gap.
Promoting Inclusive Economic Growth
FM Sitharaman’s announcement emphasized the government’s commitment to the ‘Viksit Bharat’ vision, a developed India characterized by prosperity, education, and social well-being. As part of this vision, the government has introduced a scheme to assist 500,000 first-time entrepreneurs, including women and SC/ST individuals, by providing them access to loans over the next five years. This initiative is designed to address historic barriers in the financing landscape, empowering these communities to grow and unlock new opportunities.
Addressing Gender Disparity
Despite the progress in recent years, economic disparity continues to affect women entrepreneurs in India, who often face challenges such as limited access to funding and professional networks. This new scheme aims to reduce these barriers, empowering women entrepreneurs to establish and grow their businesses. By improving financial access, the scheme hopes to create a more equitable environment for women in the business world.
Financial Support for SC/ST Communities
The scheme also focuses on providing financial support to SC/ST communities, allowing them to overcome challenges in accessing financing. By promoting self-employment and entrepreneurship within these groups, the government aims to contribute to India’s overall economic growth and development. This initiative will help entrepreneurs from these communities expand their businesses and generate employment, ultimately boosting the nation’s economy.
The Union Budget 2025 highlights the government’s commitment to fostering inclusive economic growth by providing targeted financial support to women and SC/ST entrepreneurs. With term loans of up to ₹2 crore, the scheme aims to reduce barriers to business growth, promote self-employment, and empower underserved communities to contribute to India’s economic development.
