Key Parliamentary Statement

Finance minister Nirmala Sitharaman defended the Union Budget in the lok sabha against Opposition criticism.

She stated that bank credit has grown by 13%, rejecting claims of tight lending conditions.

Emphasised that there is no shortage of lending in the economy.

Asserted that 41% of tax revenues have been devolved to states.

Clarified that the devolution share is not below 41%, countering concerns about reduced fiscal transfers.

Bank Credit & Lending Position

Reported double-digit growth in overall bank credit.

Said lending activity reflects a healthy financial system supporting businesses and consumers.

Indicated that credit flow remains adequate across sectors.

Positioned credit expansion as a sign of economic momentum.

MSME Cluster Upgrade Plan

Announced targeted support for 200 legacy MSME clusters across India.

Described MSME clusters as the backbone of India’s export ecosystem.

Focus on long-established manufacturing hubs needing modernization.

Named examples such as Ludhiana, Jalandhar, Kanpur, and clusters in bihar and West Bengal.

Plan includes financial backing for:

Technology upgrades

Modern machinery

Infrastructure improvements

Advanced production tools

The objective is to improve productivity and global competitiveness.

Aims to help traditional units integrate with global value chains.

Designed to strengthen decades-old industrial bases.

Entrepreneurship in Higher Education

Proposed embedding vocational and entrepreneurial skilling within higher education.

Shift from post-degree skill training to an integrated learning model.

Students to graduate with industry-ready and enterprise-ready skills.

Focus on job creators rather than only job seekers.

Mega Entrepreneurship Centres

Plan to establish mega entrepreneurship-building centres near industrial clusters.

Centres to be developed in partnership with state governments.

It will function as a combined higher education and enterprise hub.

Training is tobe directly linkedwith local industry needs.

Expected to drive regional industrial growth.

Policy Direction

Budget measures data-align manufacturing strength with future-ready skills.

Combines MSME modernization with entrepreneurship-focused education reform.

Signals coordinated Centre–state approach to industrial and skill development.

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