+91-9696969696
Discover what industry leaders have to say about their expectations and priorities for the upcoming budget. This collection of insights sheds light on the key reforms, policies, and support measures that could drive growth and innovation across sectors.
Dinesh Gulati, COO, IndiaMART InterMESH Limited
Healthy recovery in credit growth, strong infrastructure spending, PLI scheme aiding manufacturing however slow GDP growth in Qtr 2 & 3, high inflations and lot of geo-political uncertainties has made this year a mixed bag. However, India remains the highest GDP growing country in the world.
Simplified Tax, Easy Credit and Structured Vocational Skills
In order to create the required growth momentum, a few key enablers for MSMEs are essential. There is a further need to simplify the tax structure, create more transparency that will help reduced compliance processes and cost involved for MSMEs.
Last decade has been Start-up decade, in order to boost start-up eco system, offering a tax holiday or subsidized tax structure to newly formed MSMEs / Start-up will be quite helpful, this can be sector specific as well namely Technology, EV / Alternate energy etc. MSMEs that invest in technology, e-platforms or other tech tools should be given tax breaks in order to improve the digital transformation at a better speed.
The traditional method of BLR (Bank Loan Ratings) does not hold right for smaller businesses as they don’t have robust financial records to present, thus attracting high-interest rates and frequent rejections. Transparency in lending practices and collateral free loans can also help in providing much needed credit relief and financial support.
The government’s upcoming credit guarantee scheme, aimed at providing loans of up to Rs 100 crore without the need for collateral, is a positive initiative in this direction. The scheme will help in improving MSMEs’ growth potential by making financial resources more accessible without requiring guarantees or third-party collateral. Pooling credit risks for MSMEs through a self-financing guarantee fund will positively impact the sector by enhancing access to finance, enabling larger loans without collateral, promoting financial stability, and encouraging growth.
The internship program and employment linked incentive announced in the last budget seem to have created the desired impact. India being a young country, to drive the demographic dividends, there is an acute need to enhance vocational skills. MSMEs need continued govt initiatives to drive skill development and employment generation programs.
Online Coverage: CXO Today