Cabinet extends Stand-Up India, Mudra schemes with fresh funding boost

The government has approved a significant extension of two flagship entrepreneurship initiatives, ensuring continued support for small business owners and micro-enterprises through 2029. The Stand-Up India scheme will receive ₹4,111 crore in fresh allocation, while the Mudra Yojana's Micro Units Development and Refinance Agency fund will be boosted with ₹5,000 crore.

These schemes have emerged as cornerstone programmes for promoting self-employment and job creation among India's growing entrepreneur base. Stand-Up India primarily targets scheduled castes, scheduled tribes, and women entrepreneurs with loans to establish new enterprises, while the Mudra Yojana provides collateral-free lending to micro and small business units.

The extension reflects the government's commitment to sustaining momentum in the startup ecosystem and enabling financial inclusion across India's entrepreneurial landscape. The additional funding is expected to facilitate loan disbursements to hundreds of thousands of prospective and existing business owners seeking to scale operations or launch new ventures.

The Cabinet decision comes amid ongoing efforts to reduce unemployment and foster economic resilience in India's grassroots economy, particularly in rural and semi-urban areas where access to institutional credit remains limited.