The country is full of expectations for Budget 2024, with Finance Minister Nirmala Sitharaman’s presentation on July 23 eagerly awaited. Ahead of Budget 2024, there is a strong consensus among MSME stakeholders for key reforms. Key expectations also include increasing the credit guarantee fund for MSMEs. Interest subsidy schemes are also being emphasized to reduce borrowing costs, aimed at addressing the liquidity challenges faced by MSMEs. Improving digital infrastructure is critical to speed up loan processing and reduce the high rejection rate of loan applications.

Atif Shamsi, CEO and founder of OuchCart, expects major initiatives to facilitate MSME financing in Budget 2024-25. He demanded to increase the credit guarantee fund for micro and small enterprises. 3 lakh crore or more, likely to open 4.5 lakh crore in additional credit. Solar emphasizes reducing the cost of interest on MSME loans (11-14%) through interest subsidized schemes and implementing a risk-based lending model. He also expects an extensive digital infrastructure to improve loan processing efficiency and reduce the 40% rejection rate.

Other stakeholders share similar expectations:

Tagglabs founder, Hariyum Seth, wants increased funding allocation for startups 15,000 crore and initiatives like PM Kaushal Vikas Yojana 4.0 for development of MSME workforce.

Gurmeet Singh Arora, national president of the Indian Plumbing Association, hopes to expand the emergency credit line guarantee scheme and increase MSME digital access.

Raghunandan Saraf, founder and CEO of Saraf Furniture, suggested scaling up schemes like the PM Vishwakarma Kaushal Saman for traditional artisans and promoting fintech-bank partnerships.

Delphine Varghese, co-founder and chief revenue officer of Ed County Media, praised the government 22,137.95 crores have been allocated in Interim Budget 2024 to empower MSMEs globally.

Samin Gupta, director of Premier Road Lines, expects the infrastructure boost to boost logistics efficiency and reduce costs.

Together, these expectations emphasize the need for stronger financial support, technological development, and policy reforms to bolster the MSME sector in India.

Disclaimer: The above views and recommendations are those of the individual analysts, and not of the Mint. We advise investors to consult certified experts before making any investment decision.

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