The budget verdict: what experts are saying

Dinesh Gulati, COO, IndiaMART InterMESH Limited
We are delighted to see the overwhelming contribution and growth of the MSME sector in India and the government’s continuous focus on enhancing it further. Responsible for 45% of exports and employment to 7.5 crore people, MSMEs are one of the biggest sectors contributing to Indian GDP and we are glad to see that the budget has significantly recognised the sector’s play in the same.

Addressing the issues of credit access and skilling, much prevalent in the sector, saw significant reforms in the budget today. The revised criteria for classification and investment will encourage the businesses to scale up without losing incentives. The increase in credit guarantee cover, with additional schemes for 2-crore term loan for first-time women and customised credit cards till 5 lakh limit, is a major boost for the MSME sector. The expansion of the Fund of Funds for Startups with an additional INR 10,000 crore will encourage innovation and entrepreneurship at scale.

Another two important areas that demand special mention are the programmes for manufacturing and the skilling of the future workforce. The introdu+ction of the National Manufacturing Mission to support the MSMEs through comprehensive policy backing and a detailed framework will further pave the way for us to become a global manufacturing hub.

The Launch of National centres of excellence for skilling, and Atal Tinkering Labs in government schools to encourage curiosity, innovation, and scientific temper indicates that the future of the country will be prepped and equipped with the right skills to take over.

The significant reduction in personal income tax remains the obvious highlight, as it will leave more disposable income in the hands of individuals. This is expected to boost consumption, particularly benefiting MSMEs and consumer-driven sectors, driving overall economic momentum.

Online Coverage: CXO Today