What MSME sector expect from the Union Budget 2023?
1 min read . Updated: 31 Jan 2023, 07:11 PM IST
PremiumThe primary expectation of the MSME Budget of 2023-24 is to get enhanced access to working capital
After 5 days, Finance Minister Nirmala Sitharaman will present Union Budget 2023. Every sector has certain expectations from the budget. The primary expectation of the MSME Budget of 2023-24 is to get enhanced access to working capital. Livemint spoke to industry experts to know their expectations.
Ridhima Kansal, Director, Rosemoore
Budget 2023 should prioritise reforms to improve the process of conducting business for MSME sector. Also there is an urgent necessity to implement policies that lower input costs, increase liquidity, and promote financial inclusion by offering small firms with affordable financial products. To further endorse small enterprises as well as embolden business owners, endorse methods such as startup-friendly initiatives that allow for greater investment in innovation and tax breaks should be implemented.
Ashish Aggarwal, Director, Acube Ventures
Account Aggregator (AA) and Open Credit Enablement Network (OCEN) initiatives have been a huge relief to the MSME sector. Budget 2023 is expected to include supportive measures aimed at democratising credit and speeding up financial inclusion.
Kumar Saurav, Global Mobile Business Head, AdCounty Media Pvt. Ltd
The primary expectation of the MSME Budget of 2023-24 is to get enhanced access to working capital. However, the Indian government is already looking forward to initiatives like restructuring the Credit Guarantee Scheme and full-fledged integration of Udyam, e-Shram, and National Career Service and ASEEM portals. It has also extended the non-tax benefits for MSMEs for up to 3 years. Alongside this, education in leveraging marketing and technology is pivotal for the growth of MSMEs and indispensable to making India self-reliant.
Accelerating the flow of credit to small enterprises is essential for India to achieve its $5 trillion economy dream by 2025 as the MSME sector has been a significant driver in the country’s rise as the world’s fifth largest economy, suggests KPMG November 2022 report on non-banking financial companies (NBFCs) and housing finance companies (HFCs). The report also noted that although the economic losses to the MSME sector from the Covid pandemic were huge, it has been recovering well on the back of solid policy initiatives from the government. The MSME loan market has risen from ₹31 lakh crore in March 2020 to ₹36.4 lakh crore as of June 2022, with 88 per cent of registered borrowers hailing from the micro-segment, 10 per cent from the small segment, and only 2 per cent from the medium segment, the report showed.
