Revamping MSME Financial Aids: PHDCCI's Vision for Growth

The PHDCCI proposes reintroducing an interest subvention scheme and revising MUDRA loan ceilings to support MSMEs in the upcoming Union Budget. These measures aim to meet MSMEs' financing needs, reduce regulatory burdens, and encourage global competitiveness. Additional recommendations include equity infusion and tax audit relief.

The PHDCCI has put forward recommendations aimed at bolstering MSME finances for the forthcoming Union Budget. Key among them is the revival of an interest subvention scheme offering a 2% interest subsidy on MSME loans to improve competitive standing through lower borrowing costs.

Additionally, the industry body suggests increasing the ceilings on MUDRA loans, raising them to Rs 1 lakh for the Shishu category and to Rs 10 lakh for the Kishore category, thus addressing the financial evolution stages of micro units and entrepreneurs under the Pradhan Mantri Mudra Yojana.

To further accelerate MSME growth, PHDCCI calls for equity infusion for startups, expansion of MSME facilitation council accesses, and raising the Credit Linked Capital Subsidy Scheme's investment threshold to support technological advancements. Furthermore, removing mandatory tax audits for micro enterprises with turnovers up to Rs 10 crore is proposed.

(With inputs from agencies.)