From Agriculture to IT Sector What MSMEs want from This Union Budget 2024

Ahead of the upcoming interim Union Budget 2024, Micro, Small, and Medium Enterprises (MSMEs) sector is looking up to the Finance Minister with expectations centered around fostering a conducive financial environment for their growth and sustainability.

Foremost among their expectations is improved access to finance, encompassing simplified loan procedures and reduced interest rates. Credit guarantee schemes are sought after to provide a safety net for lenders, encouraging them to extend credit to the often credit-constrained MSMEs. Working capital support remains a priority, with a desire for policies that facilitate timely payments and ensure a stable cash flow. MSMEs also anticipate digital infrastructure enhancements, such as improved access to digital payment systems and e-commerce platforms, to enhance their competitiveness in the digital era. Regulatory ease, tax reforms, and infrastructure development are additional areas where MSMEs seek supportive measures. Furthermore, initiatives focusing on skill development and export promotion are vital for their adaptability and expansion into international markets. Overall, MSMEs expect the Finance Minister to implement a comprehensive set of measures that alleviate challenges, promote innovation, and create an enabling environment for sustained growth and development. 

In this respect, SMEStreet has invited expectations from the industry and, Mr Partha Neog, CEO and Co-Founder of Vantage Circle said, "We eagerly anticipate the Union Budget 2024, aligning our expectations with the unique challenges and opportunities in the SME/MSME and Small Business sectors. Recognizing that SME/MSMs form the country's backbone, contributing significantly to income generation and India’s economic growth, we hope to witness substantial growth in these sectors in the upcoming budget. We expect the budget to establish robust financial support mechanisms tailored to SME/MSMEs, fostering an environment conducive to innovation and expansion. Simultaneously, we look forward to notable enhancements in the dynamic small business sector, with the inclusion of incentives for R&D programs and the adoption of Gen AI, poised to revolutionize the overall business landscape." 

However, the ambitious target for agriculture credit could lead to increased demand for cutting-edge farm machinery and crop management solutions. This is particularly significant as it aligns with the goal of meeting the rising global demand for Indian grains. The expansion of credit is also seen as a means to assist farmers in recovering from losses resulting from changing climatic conditions.

"The 2024-25 Union budget is anticipated to allocate ₹2 trillion to the agriculture ministry, aiding the expansion of government initiatives focused on supporting farmers' income and crop insurance. However, there is a need for heightened attention to provide incentives and loans for acquiring agricultural machinery to expedite the growth of the agriculture sector in India. This approach aligns with the vision of fostering a technologically advanced agricultural sector in the country," Naren also added, "Additionally, reducing duties on raw materials for agricultural machinery is essential to ensure the affordability of such equipment. The objective is to make agricultural machinery easily accessible nationwide and promote the export of Indian agricultural machinery globally. While the Union Budget prioritizes supporting farmers' growth, it is imperative to ensure that essential support is extended to domestic agricultural machinery production companies for the accelerated advancement of the agriculture sector in the country."

 Expectations from the IT sector