MSMEs Pin Hopes on Upcoming Union Budget for Sectoral Boost

Finance Minister Nirmala Sitharaman will present the Union Budget on July 23, with MSMEs hoping for a focus on easing credit, reducing compliance costs, and technology incentives. Industry leaders emphasize the need for financial inclusion, skill development, and a dedicated PLI scheme to enhance sectoral growth.

As Finance Minister Nirmala Sitharaman prepares for the upcoming Union Budget, the micro, small, and medium enterprises (MSMEs) sector is hopeful for prioritization and promotion. The Finance Minister will present the 2024-25 Union Budget on July 23, marking her third consecutive term.

The MSME industry has called on the government to ease credit and financing mechanisms, facilitate skill development, reduce compliance costs, and incentivize the adoption of cutting-edge technologies. 'The interest rate for MSMEs should be brought in line with housing loans to enable technological and infrastructural upgrades,' said Dr. Vijay Kalantri, Chairman of the World Trade Centre Mumbai and President of the All India Association of Industries (AIAI).

Gurmit Singh Arora, National President of the Indian Plumbing Association, emphasized extending the Emergency Credit Line Guarantee Scheme until at least March 2026 with an additional Rs 75,000 crores to provide liquidity support. 'MSMEs are still reeling from the pandemic and need continuous funding support,' he said. The sector's contribution to India's GDP has been notable, with a significant rise over recent years. The Ministry of MSMEs received Rs 22,137.95 crore for implementing various schemes and technology upgrades under the interim Budget 2024-25.

Pankaj Sharma, CEO of Religare Finvest Ltd, stressed the need for interest rate subsidies and comprehensive tax relief for MSMEs. Addressing delayed payments, Winny Patro, CEO & Co-founder of Recordent, highlighted the critical need for timely payments to not entangle MSMEs in cash flow issues. Parth Parmar, Director of PARE Innovations Pvt Ltd., highlighted the importance of skill development programs to maintain a skilled workforce and expand the 'Make in India' initiative.

Ankit Kumar, CEO of Skye Air, and SBI Research emphasized that a dedicated Production-Linked Incentive (PLI) scheme could further MSMEs' growth. 'Financial inclusion, simplified GST compliance, and initiatives that foster skill development and market expansion will be crucial,' said Abhinav Mathur, CEO & Managing Director of Kaapi Machines. (ANI)

(With inputs from agencies.)