New Delhi, Jan 20 (KNN) As India anticipates Finance Minister Nirmala Sitharaman’s presentation of the interim Budget 2024-25 on February 1, the Micro, Small & Medium Enterprises (MSME) sector is pressing for a special package.
With the MSME sector contributing 29.15 per cent to the country’s GDP in 2021-22, stakeholders are eager for measures to enhance the availability of institutional credit at competitive rates, as reported by The Hindu.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) highlights the uneven relationship between banks and MSMEs, urging Sitharaman to address issues faced by the sector.
FISME Secretary General Anil Bhardwaj cites the lack of competition in the banking sector and weak regulatory institutions as challenges for MSME owners.
According to consultancy firm Deloitte, promoting risk mitigation tools like credit guarantees and insurance schemes is essential to reduce risks in capital flows to MSMEs, especially in industries like automotive, electronics, industrial machinery, and chemicals.
The government is encouraged to reimagine the digital commerce ecosystem to boost online sales.
Puneet Kaura, Chairman of CII Delhi State, emphasises the MSME sector’s role as the backbone of the country, contributing to employment and growth in manufacturing and exports.
Kaura calls for a special package to address the sector’s credit needs, enabling it to play a significant role in critical sectors such as semiconductors, space technology, defence, and medical equipment.
The MSME ministry, which implements various schemes and programs, was allocated Rs 22,137.95 crore in the Union Budget 2023-24, a 41.6 per cent increase from the previous fiscal year.
Expectations are high for increased allocations in the upcoming fiscal year to address the challenges and opportunities faced by the MSME sector.
(KNN Bureau)
