The Critical MSME Factor in Union Budget 2023-24
SMEStreet in it's MSME outreach has tried to understand the top priorities of Indian MSMEs and top expectations from Finance Minister Smt. Nirmala Sitharaman for the Union Budget 2023.
Micro, Small and medium enterprises (MSMEs) play a critical role in India’s growth and development. They contribute significantly to the country’s economy, generating employment, promoting entrepreneurship, and driving innovation. MSMEs are responsible for a large portion of India’s industrial output and exports, and they are also major providers of goods and services to the local market. Additionally, MSMEs help to distribute wealth more evenly across the country by creating opportunities for entrepreneurship and economic activity in smaller towns and rural areas. The government of India recognizes the importance of MSMEs and has implemented several initiatives to support their growth and development. However, SMEs still face significant challenges, such as access to finance, lack of skilled labour, and poor infrastructure, and continued support is needed to help them overcome these challenges and play a greater role in India’s economic growth.
Here are top seven expectations of Micro, Small and medium enterprises (MSMEs) from the Union Budget 2023:
- Access to finance: SMEs expect the government to provide more support for access to finance, such as low-interest loans and incentives for banks to lend to small businesses.
- Tax relief: SMEs hope for tax relief, such as reductions in corporate tax rates and simplification of the tax filing process.
- Skilled labor development: SMEs hope for government initiatives to develop a skilled labor force, such as vocational training programs and incentives for businesses to invest in employee training.
- Digital infrastructure: SMEs expect the government to invest in digital infrastructure, such as broadband connectivity and e-commerce platforms, to support their growth.
- Ease of doing business: SMEs hope for measures to simplify regulations and procedures, reduce red tape, and improve the ease of doing business in India.
- Support for innovation: SMEs hope for government support for innovation, such as tax incentives for research and development and funding for start-ups.
- Access to international markets: SMEs expect the government to provide support for accessing international markets, such as trade agreements and export promotion programs.
In addition to the above mentioned certain elements such as any level of govt’s motivation for technology upgradation and employment generation could add as an feel good factor among MSMEs.