Here is What MSMEs Gets in Union Budget 2019
“MSMEs that grow not only create greater profits for their promoters but also contribute to job creation and productivity in the economy. Our policies must, therefore, focus on enabling MSMEs to grow by unshackling them.” [Economic Survey 2018-19]
Here is a list of key Budget 2019-20 Allocations and Focus Areas which are influencing the Indian MSME sector:
- Total Budget allocation for FY 2019-20 stands at Rs. 29 crore. This is an all time high allocation for the Ministry of MSME. As compared to last year Allocation of 6552 cr. 459 cr increased as compared to last year which is 7%.
- The flagship scheme for employment generation of the Ministry, namely Prime Minister Employment Generation Programme (PMEGP) got an all-time high allocation of Rs.2327 crore. The allocation in the scheme has gone up by 117% over the period of last two years. This would generate self employment opportunities through establishment of about 88,000 micro enterprises in the non-farm sector, providing employment to around 7 lakh people. This would facilitate a credit flow of around Rs.10,000 crore to the micro sector.
- Interest Subvention Scheme for Icremental credit to MSMEs–As part of access to credit, Hon’ble PM announced a 2% interest subvention for all GST & Udyog Aadhar Memorandum registered MSMEs maximum up to Rs.1 crore, on fresh or incremental loans. The allocation was 975 cr for 2018-19 and 2019-20.
- Technology Centres – Under Hob and Spoke Scheme, it is proposed to establish 20 Extension Centres as spoke of Existing Technology Centres during 2019-20. These Extension centres would extend support in the field of skilling and technical consultancy to MSMEs.
- 871 crore has been allocated for the Khadi & Village Industries sector in order to bring in higher growth, better remuneration for the artisans and creating value in the supply chain.
- During last four years, the allocation for MSME has gone up by 133% from Rs. 3007.42 Crore in the Financial Year 2015-16 to Rs. 7011.29 Crore in Financial Year 2019-20.
- Government has adopted ‘Cluster Development Approach’ as a key strategy for enhancing the productivity, competitiveness and capacity building of Micro and Small Enterprises (MSEs). The total number of Technology Centres under the Ministry will go up from the existing 18 to 153 in next few years.
- The total allocation under Credit Linked Capital Subsidy Scheme for Technology Upgradation is Rs. 737.44 Crore. The major objective of this Scheme is to facilitate MSEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of upto Rs 1 crore availed by them) to upgrade their plant & machinery with state-of-the-art technology.
- A special focus has been given to ‘Solar Charkha Mission’ to touch the lives of Rural Artisans including Spinners, Weavers, Stitchers, by focusing on Solar Charkha based Clusters. The scheme envisages setting up production clusters, each employing around 2000 youth in the rural area, at least 50% of which would be women.
- Allocation for Solar Charkha Mission was 50 crore in last year. In 2019-20 it is 143 crore. This increase is 186%. Through this scheme 1 lakh employment will be generated.
- Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), the budgetary allocation would harness setting up of 120 artisan-based traditional clusters. This will give an unprecedented boost to employment generation in the traditional and rural industries. Maximum intervention of Rs.2.5 crore for 500 artisans and Rs.5 crores for more than 500 artisans in the non-farm sector.
- A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE) – Setting up of Livelihood Business Incubator (LBI) – 120 in the current year to provide skilled manpower. 600 of such skilled manpower per Centre per year would provide 72000 such persons. 30 Technology Business Incubators will be set up to provide Technology led innovation ideas to develop prototypes. These would incubate 3000 such persons this year.
- 121.69 crore to ‘National Schedules Caste/Scheduled Tribe Hub’ in FY 2019-20 which is an increase of around 30% over the BE of FY 2018-19 for developing a supportive ecosystem towards SC/ST entrepreneurs.
ONLINE PAYMENT PLATFORM – It is also proposed to have a designated payment platform for MSMEs whereby payments can be made online by MSMEs through the portal saving time.
SOCIAL STOCK EXCHANGE – A social stock exchange proposed for social entities.
Announcements for MSMEs:
- 59 MINUTE LOAN SUVIDHA – SANCTIONED
- PENSION TO TRADERS WITH 1.5 CR TURNOVER
- ALMOST 3 CR SMALL TRADERS WILL BENEFIT WITH PENSION FACILITIES