Imphal, Feb 1 (PTI) Manipur Chief Minister N Biren Singh on Saturday said the enhancement of investment and turnover limits for the classification of MSMEs proposed in the Union Budget will be highly beneficial for the state.

He also hailed the zero tax on income up to Rs 12 lakh per annum as a significant step towards alleviating the "financial burdens of hardworking families".

"The New Classification Criteria for MSMEs will be greatly beneficial to Manipur which has been a major contributor to the MSME business registration among the North East states," the CM said in a post on X.

Finance Minister Nirmala Sitharaman said that to help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification will be enhanced to "2.5 and 2 times, respectively".

"I thank Hon'ble PM @narendramodi and Finance Minister, Smt @nsitharaman ji for the expansions in the investment limit & turn over limits which will further boost entrepreneurship, local businesses, trade and commerce," Singh said.

He said the announcement made on income tax was a testament to the government's commitment to the aspirations and welfare of the middle class.

"The announcement to exempt income tax on earnings up to Rs 12 lakh is a significant step toward alleviating the financial burden on hardworking families. This initiative is part of a broader income tax bill, which is scheduled to be introduced next week. The reform is a testament to the government's commitment to the aspirations and welfare of the middle class, reflecting a step towards a more inclusive and prosperous future," he said.

Singh also lauded the enhancement of regional connectivity under the UDAN scheme.

"Manipur and the rest of the North East region have already seen a transformative change in air connectivity under the UDAN scheme which has boosted travel, tourism, and trade & commerce, contributing to the growth of the entire region. With additional airports across the country, the middle class will realise their aspirations for faster and more affordable travel," he said. PTI CORR SOM

MSME classification expansion enhances access to capital and scale, and income tax exemption increases middle class relief. Enhancement of MSME classification thresholds raises investment and turnover ceilings to widen eligibility for MSME benefits, improve access to credit, and promote technological upgradation and entrepreneurship. A new income tax exemption threshold provides targeted tax relief for lower middle income taxpayers, and expanded UDAN regional connectivity aims to support travel, tourism and trade as complementary economic measures.