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MSME Budget 2023 Expectations: MSME sector experts seek better access to credit for expanding their business, a more simplified tax system, and incentivising structure.
Finance Minister Nirmala Sitharaman will table the Union Budget 2023 on February 1. While speaking with Moneycontrol, the majority of experts from the MSME sector resonated in one voice that the sector expects the Budget of 2023-24 to further simplify the tax structure and ease of getting credit for small businesses.
Here is what the sector’s experts have to say
Dinesh Agarwal, Founder and Chief Executive Officer, IndiaMART
My expectation from Budget for MSMEs has always been the same, which is the simplification of Tax regulations and other compliances. Usually, small businesses are a one-man army, or at best, functions with limited manpower. Hence, getting the compliances done is costly and time-consuming. Its simplification will help MSMEs to devote more time to their business and innovation.
Implementation of GST has simplified the tax regime as in the erstwhile vat regime, it was quite complicated. Although, it still needs further simplification.
Similarly, as they work on a long credit cycle and slim profit margin, easy access to credit at a cheaper rate becomes crucial. This must be addressed by the government to help to do business easy.
Sandip Chhettri, CEO, Tradeindia.com
India’s economy has consistently been regarded as one of the most resilient economies when compared to other nations; this is mostly because of the effective economic policies implemented by the Indian government. Due to its robust MSME sector, which is less vulnerable to global trade flows than other economies, India is somewhat insulated from global spillovers. Prudent regulatory measures and policy reforms have played a crucial role in developing resilience in the economy. From the Union budget 2023, we expect the government to announce a better implementation plan of the policies, which shall aid India in navigating the current Macro Economic crisis.
I believe that easy credit and technological adoption should be the keys to making MSME robust.
The government should balance this coming union budget should definitely focus on increased spending on technology infrastructure for the MSME sector so that it makes access to technology easier for MSMEs, making it easier for small businesses to adopt. For MSMEs, digitalisation can act as a catalyst for generating new opportunities for growth. It can help with capturing and retaining a skilled workforce. If India wants to compete globally and become the world’s manufacturer, it needs to help its MSME expedite digitisation to unlock its true potential by leveraging technology in hiring.
Saksham Malik, Programme Manager at The Dialogue
A renewed attention on skill development and research and development will be crucial to ensure that an increased number of startups succeed in the emerging technologies space. It will be crucial that the government not only invests in sensitising children about responsible use of AI and catching them young along with nurturing an enabling environment for business to thrive through phased incentives.
What we need is a budgetary allocation that will bridge the digital divide as a short term goal and brilliance divide as a long term one.
Pranav Dwivedi, Founder at Netratvshaala
The demand for cloud services and deep technologies such as AI and blockchain is only increasing, and the Union Budget 2023 should focus on incentivising their growth and integration. This would enable businesses to become more agile and efficient and operate at an optimal level.
Overall, it is essential for the government to recognise the technology sector’s potential and invest in it to accelerate the growth of the Indian economy. With the right incentives, we can be confident that Union Budget 2023 will unlock immense value and propel India to the ranks of the world’s most successful economies.
Ranjit Barthakur, Founding Director, The Balipara Foundation
The government’s announcement of various incentives for agroforestry in the 2022 budget was a welcome move for the rural economy to increase productivity while also encouraging farming practices that are resilient to climate and ecology. We need to capitalise on this and also focus on building a broader ecosystem of incentives around processing and connecting farmers to markets for produce.
Farmers also need greater clarity on the materials they can access in agroforestry, the insurance they will receive for crops and support during the maturation period – or else receive support in agroforestry design, which becomes self-sustaining within the first year.