Finance Minister Nirmala Sitharaman on Saturday (Feb 1) announced a scheme to make India a global hub for toys by focusing on cluster development.

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In her budget speech, Sitharaman said that the scheme will focus on the development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the 'Made in India' brand.

"Building on the National Action Plan for Toys, we will implement a scheme to make India a global hub for toys," the FM said.

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National Manufacturing Mission

The Finance Minister also proposed a National Manufacturing Mission covering small, medium, and large industries for furthering “Make in India” in Budget 2025-26. 

The Mission’s mandate includes five focus areas: ease and cost of doing business, future-ready workforce for in-demand jobs, a vibrant and dynamic MSME sector, availability of technology, and quality products.

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“Our government will set up a National Manufacturing Mission covering small, medium, and large industries for furthering “Make in India” by providing policy support, execution roadmaps, governance and monitoring framework for central ministries and states,” Sitharaman said in her budget speech.

To promote employment and entrepreneurship opportunities in labour-intensive sectors, the government will also undertake specific policy and facilitation measures.

New classification criteria for MSMEs

Sitharaman ,who presented her eighth consecutive Union Budget 2025 on Saturday, announced new classification criteria for Micro, Small, and Medium Enterprises (MSMEs).

Also read | India Union Budget 2025: Finance Minister announces new classification criteria for MSMEs

She said that the Union Government will enhance credit guarantee cover for micro, small and medium enterprises to Rs 10 crore ($1,153,437) from the existing Rs 5 crore ($576,718).

Sitharaman said that customised credit cards with a limit of Rs 500,000 ($5767) will be started for small businesses registered on the Udyam Portal. These credit cards will be given to around 1 million businesses in the first year.

"The investment and turnover limits for the classification of all MSMEs will be enhanced to 2.5 and 2 times, respectively. This will give them the confidence to grow and generate employment for youth," she added.

(With inputs from agencies)