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Budget 2024: What do small business owners in the country want from the Minister of Finance, this is the demand of the MSME sector

Sagar Patel

By Sagar Patel

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MSME sector has high hopes for the budget

Small entrepreneurs in the country, especially those engaged in micro, small and medium industries (MSMEs), contribute around 30 per cent to India’s GDP. In the new era, many startups are also a part of this sector. In such a situation, before the presentation of the full budget for the financial year 2024-25, people from this sector want Finance Minister Nirmala Sitharaman to accept some of their demands.

The government had presented the interim budget in February in view of the Lok Sabha elections. So, now by the end of July, the government will be able to present the full budget for the financial year 2024-25. From the Finance Minister to the Reserve Bank of India, everyone has heard the MSME sector, because this sector can help a lot in tackling the challenge of unemployment.

The Ministry has asked for Rs 5,000 crore for employment

The first demand for the MSME sector has been made by the Ministry of Micro, Small and Medium Industries itself. Just a few days ago, the Ministry of MSMEs demanded an additional Rs 5,000 crore from the Ministry of Finance. This fund will be utilised by the ministry for clearing of claims under the Prime Minister’s Employment Generation Programme (PMEGP).

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Under PMEGP, the government is providing bank loans at concessional interest rates for self-employment through Khadi and Village Industries Commission (KVIC). The government has allocated Rs 13,500 crore under PMEGP for 2021-2026. Now the ministry has demanded an additional Rs 5,000 crore.

Need to work on cash flow and ease of doing business.

Another major demand of the MSME sector, which is still struggling with the after-effects of Covid, is to include some plan and policy in the budget to improve cash flow. The issue of funding for startups is also very important in this. At the same time, the MSME sector wants the government to work more on ease of doing business in this segment as well.

Industry expert and founder of Ethic Advisory, Ratish Pandey, says that in the upcoming budget to make the task easier, the government can make some provisions to improve the IT infrastructure for the MSME sector. The government can offer them tax reliefs on the expenses incurred to invest in IT hardware and software. This will help them adopt future technologies like AI, supply chain systems and CRM, etc.

Meanwhile, the Reserve Bank of India (RBI) will also hold a meeting with the MSME sector organisations on Monday. So that we can understand their needs. Also, it can be known that if the RBI makes any arrangements to increase cash flow for MSMEs, what will be its viability.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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