The MSME sector desires Finance Minister Nirmala Sitharaman to come out with a special bundle for small and medium enterprises to guarantee better availability of institutional credit score at aggressive charges to allow it to play an even bigger function as India strikes nearer to changing into a USD 5 trillion financial system. Sitharaman is scheduled to current the interim finances 2023–24 in the Lok Sabha on February 1. This might be the final main financial doc of the authorities earlier than the subsequent basic elections.
The Union Budget 2024-2025 is anticipated to have a major affect on the MSME sector. According to a PTI report, the MSME sector accounted for 29.15% of the nation’s gross home product (GDP) in the fiscal 12 months 2021–22.
Expectations embrace addressing the uneven energy dynamic between banks and MSMEs, the place the steadiness typically favors lenders, in accordance to the Federation of Indian Micro and Small & Medium Enterprises (FISME).
The business stakeholders are anticipating insurance policies that additional incentivise innovation and sustainable growth in sector, which can also be the focus space of the authorities right now. Key expectations embrace supportive measures to pave the approach for long-term prosperity and world competitiveness, Samit Garg, MD, E-Factor Experiences, stated.
Besides, enhanced help for infrastructure developments, extra accessible financing choices for small and medium enterprises, and tax reliefs can stimulate business growth. “Additionally, recognising the significant role of events in tourism, the industry looks forward to initiatives that strengthen this synergy and economy,” Samit stated.
Notably, MSMEs are hailed as the growth engines of the Indian ecosystem. The evolution of MSMEs will be credited to technological developments that surged to cater to dynamic shopper preferences, world developments, and variable market situations.Â
“Adoption of technology is crucial for MSMEs to aid critical and informed decision-making. Technology can help MSMEs gather and analyse data, encourage efficient resource allocation, boost operational efficiency, and maximise returns,” Delphin Varghese, co-founder, AdCounty Media, stated, including that the expectation from the authorities is to allocate funds to MSMEs in a bid to foster technological developments and infrastructural help.
Stakeholders additionally anticipate budgets to help the implementation of the ONDC initiative, which might enable entry to a number of e-commerce platforms with none entry boundaries and profit from the standardization of information and processes.
Also, synthetic intelligence (AI) has the potential to emerge as a transformative pressure for MSMEs. Hariom Seth, founder of Tagglabs, stated, “The integration of AI in e-commerce platforms can propel MSME growth, boosting profits and sales for a sustainable future.”
“Measures to promote e-commerce among MSMEs, such as simplifying the regulatory framework, providing tax benefits, and creating infrastructure for logistics and digital payments, will be welcome. This would help MSMEs reach a wider customer base, reduce operational costs, and enhance the customer experience,” Zameer Malik, CEO of Kulsum’s Kaya Kalp, stated.
The MSME accounts for 48 per cent of the nation’s total exports and employs over 11 crore folks. The finances presents a possibility to handle the distinctive challenges and harness the potential of MSMEs.
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