In a major push for inclusive economic growth, Finance Minister Nirmala Sitharaman announced a new scheme aimed at empowering first-time entrepreneurs from women, Scheduled Castes (SC), and Scheduled Tribes (ST) communities. As part of the Budget 2025-26, the government has committed to supporting five lakh such entrepreneurs over the next five years through financial assistance and business development resources.
The initiative focuses on providing term loans of up to ₹2 crore, ensuring that aspiring business owners have access to capital for launching and scaling their ventures. This move is expected to bridge the financial gap that often prevents individuals from marginalized communities from entering the entrepreneurial space. The scheme aligns with the government’s broader vision of fostering self-reliance, boosting employment, and driving socio-economic mobility among underrepresented groups.
By easing credit access and reducing financial barriers, the scheme is likely to encourage innovation and business creation across various sectors. The targeted approach ensures that those who have historically faced challenges in obtaining institutional funding receive structured support to turn their business ideas into reality.
This initiative builds on previous government efforts to promote entrepreneurship, such as the Stand-Up India scheme, which has successfully provided credit to women and SC/ST entrepreneurs. However, the new scheme significantly expands the scale and financial scope, allowing a wider pool of first-time business owners to benefit.
The government’s focus on inclusive development is expected to create ripple effects in the economy, generating employment, enhancing productivity, and contributing to GDP growth. As businesses led by women and marginalized communities flourish, they can further contribute to local economies and drive innovation in various industries.
Beyond financial support, successful implementation of the scheme will require a robust framework for mentorship, training, and market access. Ensuring that beneficiaries receive guidance in financial management, regulatory compliance, and business operations will be key to maximizing the long-term impact of this initiative.
As India moves towards becoming a $5 trillion economy, empowering first-time entrepreneurs from diverse backgrounds will play a critical role in driving sustainable growth and reducing socio-economic disparities. The newly announced scheme marks a significant step in that direction, reinforcing the government’s commitment to inclusive entrepreneurship and economic empowerment.
