The nation is eagerly anticipating the presentation of Budget 2024 by Finance Minister Nirmala Sitharaman on July 23rd, with strong calls for substantial reforms to support the MSME sector. Stakeholders are united in their demands for increased credit guarantees, interest subvention schemes, and improved digital infrastructure to address the sector’s liquidity challenges and high loan rejection rates.
Atif Shamsi, CEO and Founder of OuchCart, anticipates significant measures to ease MSME financing. He advocates for enhancing the credit guarantee fund for micro and small enterprises to ₹3 lakh crore, potentially unlocking ₹4.5 lakh crore in additional credit. Shamsi emphasizes reducing MSME loan interest rates (currently 11-14%) through interest subvention schemes and implementing a risk-based lending model. He also calls for expanded digital infrastructure to expedite loan processing and reduce the 40% rejection rate.
Other industry leaders echo these sentiments. Hariom Seth, Founder of Tagglabs, seeks an increased allocation for the Fund of Funds for Startups to ₹15,000 crore and new initiatives like PM Kaushal Vikas Yojana 4.0 for workforce development. Gurmit Singh Arora, National President of the Indian Plumbing Association, hopes for an extension of the Emergency Credit Line Guarantee Scheme and enhanced digital accessibility for MSMEs.
Raghunandan Saraf, Founder and CEO of Saraf Furniture, proposes scaling up schemes like PM Vishwakarma Kaushal Samman for traditional artisans and fostering fintech-bank partnerships. Delphin Varghese, Co-founder and Chief Revenue Officer at AdCounty Media, praises the government’s interim budget allocation of ₹22,137.95 crore to empower MSMEs globally. Samin Gupta, Director at Premier Roadlines, expects infrastructure improvements to boost logistics efficiency and reduce costs.
These collective expectations highlight the critical need for robust financial support, technological advancements, and policy reforms to strengthen India’s MSME sector.
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