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Union Finance Minister Nirmala Sitharaman on Wednesday defended the Union Budget in the Lok Sabha, asserting that 41% of tax revenues have been devolved to states and “it is not lower than 41%”. She also said bank credit has grown by 13%, stressing there is no shortage of lending in the economy. Alongside these assurances, she announced targeted support for 200 legacy MSME clusters and unveiled plans to embed entrepreneurship-focused skilling within higher education.

200 Legacy MSME Clusters To Be Upgraded

Describing them as the backbone of India’s export ecosystem, Sitharaman said 200 long-standing industrial clusters supporting micro, small and medium enterprises would receive financial backing for technological modernisation.

She cited established hubs such as Ludhiana, Jalandhar and Kanpur, along with centres across Bihar and West Bengal, noting their historic contribution to manufacturing and exports. The Budget proposes equipping these clusters with contemporary machinery, improved infrastructure and modern instruments to enhance productivity and global competitiveness.

The initiative aims to revitalise traditional manufacturing bases that have operated for decades but now require structural support to scale efficiently and integrate with global value chains.

Skilling To Be Built Into Higher Education

In a notable policy shift, the Finance Minister proposed integrating vocational and entrepreneurial skilling directly into the education system rather than treating it as a post-graduation add-on.

Mega entrepreneurship-building centres, she said, could be established alongside industrial clusters in collaboration with state governments. These institutions would function as higher education hubs where students receive industry-linked training and graduate equipped to launch enterprises.

Instead of completing degrees and then seeking skill training separately, students should be able to leave campus prepared to start businesses, she said.

The Centre has expressed willingness to work closely with states to establish these large-scale higher education-cum-entrepreneurship centres, positioning them as catalysts for regional industrial growth.

The twin measures-upgrading 200 MSME clusters and embedding entrepreneurship within education-reflect a broader attempt to align manufacturing strength with future-ready skills.