The government’s focus on inclusivity and economic independence is evident in its provision of term loans up to Rs 2 crore for 5 lakh aspiring entrepreneurs
New Delhi: In a landmark move aimed at bolstering India’s entrepreneurial landscape, Finance Minister Nirmala Sitharaman unveiled a groundbreaking scheme for first-time women, Scheduled Castes (SC), and Scheduled Tribes (ST) entrepreneurs during the Union Budget 2025.
The government’s focus on inclusivity and economic independence is evident in its provision of term loans up to Rs 2 crore for 5 lakh aspiring entrepreneurs over the next five years. Drawing lessons from the successful Stand-Up India scheme, this initiative promises to provide much-needed financial and educational support, including online capacity-building programs for entrepreneurship and managerial skills.
A new scheme will be launched for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. This will provide term loans up to Rs 2 crore during the next 5 years. The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organized,” said Sitaraman in her 8th budget speech.
This announcement is set to transform the entrepreneurial ecosystem in India, with women-led and marginalized businesses gaining access to capital, mentorship, and empowerment opportunities that have historically been difficult to obtain.
Aanchal Saini, CEO of Flyrobe, sees immense value in the new initiative. “Starting a business takes courage, especially for first-time entrepreneurs from underrepresented backgrounds,” she shares. “This initiative is not just about financial support—it’s about believing in their dreams and giving them the tools to succeed. At Flyrobe, we’ve seen firsthand how access to the right resources can transform aspirations into thriving businesses. This scheme has the potential to uplift thousands of women, SC, and ST entrepreneurs, creating a more inclusive and empowered business landscape in India.”
Jyoti Deswal, Director of E-commerce at Lenovo, echoes the importance of this initiative. “It’s a remarkable initiative from the government to empower women entrepreneurs towards Atmanirbharta. This shows the intent and commitment of the government to ensure requisite support is enabled for women entrepreneurs and is a progressive step towards viksit Bharat.”
For Manveen Ssharma, founder of the D2C startup Pinq Polka, the announcement is a game-changer. “As a woman entrepreneur, today’s announcement is incredibly meaningful—not just for me, but for the entire women entrepreneurship community,” she states. “The Rs 10,000 crore ‘Women Entrepreneurship Fund’ is a game-changer for women-led businesses like Pinq Polka, offering not just much-needed capital but also mentorship and guidance, which are often hard to come by.”
Ssharma also appreciates the Rs 100 million credit guarantee for SMEs, which will make financing more accessible to women entrepreneurs, who have often struggled to secure financial support for their ventures. “The government’s commitment to supporting women-led businesses and fostering financial independence is exactly what’s needed to drive true empowerment. I’m excited to see how these initiatives will help women entrepreneurs thrive and scale their businesses.”
In line with this vision, Veenu Jaichand, Partner at EY India, highlights the importance of complementary actions to ensure the success of this initiative. “The provision of term loans up to Rs 2 crore for women and SC-ST first-time entrepreneurs is a commendable step in providing financial impetus to aspiring entrepreneurs from marginalized communities,” she states. “However, to ensure long-term sustainability, it is crucial that this initiative is accompanied by continuous enablement, mentorship, and a focused approach to market linkages. Only with these complementary actions will the funding become a true enabler of growth and economic independence for these communities.”
Dishi Somani, Founder of Dishi S Designer Jewellery, shares her excitement: “This initiative will provide a crucial boost, encouraging individuals to step up and start their own businesses, generating funds and income. The scheme builds on the success of the Stand-Up India program, offering loans ranging from Rs 10 lakh to Rs 1 crore. The added benefit of online capacity-building programs to enhance entrepreneurial and managerial skills will empower women to scale and manage their businesses effectively.”
The launch of this new scheme is expected to foster a new wave of entrepreneurship, empowering women and marginalized communities to break barriers and unlock their full potential. With financial support, education, and mentorship, these first-time entrepreneurs will have the tools to build sustainable businesses, contributing to India’s economic growth and creating a more inclusive and diverse entrepreneurial ecosystem.
The Union Budget 2025 marks a pivotal moment in the government’s commitment to ensuring that entrepreneurship is accessible to all, no matter their background or gender. This initiative is not just a policy announcement; it is a catalyst for change that will inspire future generations of women and marginalized entrepreneurs to dream big and achieve their aspirations.
