Finance Minister Nirmala Sitharaman's eighth Budget provided a shot in the arm to micro, small and medium enterprises, as she proposed a slew of measures including enhancement of investment and turnover limits for their classification, increase in credit guarantee cover for micro and small enterprises and customised credit cards for micro entities registered on the Udyam portal.

The Finance Minister described MSMEs as the second power engine for development, as they constitute 45 per cent of the country's exports. To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs were enhanced to two-and-a-half and two times, respectively.