Ahead of the first budget of the re-elected Modi government on July 23 by Finance Minister Nirmala Sitharaman, experts and key voices in the MSME ecosystem have recommendations in place to help boost the ease of doing business scenario in the country and enable better access to key resources to run and scale a business. Take a look:
Uday Sharma, Chief Commercial Officer, Allcargo Gati: The upcoming budget should create an environment where MSMEs can flourish with well-developed logistic infrastructures based on sustainable practices. We expect the budget to prioritize investments in infrastructure development, digitalization, and skill development, which will further empower MSMEs.
Smitha Shetty, Regional Director, APAC, Achilles Information: The upcoming budget is anticipated to bolster support for MSMEs and prioritize supply chain sustainability. Enhanced infrastructure development, streamlined regulations, workforce upskilling, and increased investment in innovation-driven technologies will be pivotal in fostering MSME sector growth.
Manish Shah, MD & CEO, Godrej Capital: For the MSME sector, key focus areas may include fostering a favourable business environment to enhance the ‘ease of doing business.’ Some of these areas involve facilitating credit, streamlined GST processes, and regulatory changes. Furthermore, relaxed taxation policies that encourage entrepreneurship and innovation, along with incentives to drive R&D investments, would also be welcomed.
Kalyan Basu, MD and CEO, Vayana TradeXchange: The government can look at establishing an MSME Bank to support manufacturing, exports, and employment. It can revise the caps for regional rural banks and scheduled commercial banks under the CGTMSE scheme to improve MSME credit access, especially in rural areas.
Further, simplifying customs procedures and addressing financing hurdles for exporters, expanding the scope of the PLI scheme, introducing new subsidies or grants to incentivize localization and domestic production for MSMEs, offering targeted tax waivers, startup tax holidays, deferred tax payments, accelerated depreciation, tax credits for R&D, and exemptions for angel/venture capital investments to reduce setup costs and support growth would be welcoming.
Amit Kapur, Joint Managing Partner, JSA Advocates and Solicitors: The budget needs to reverse the capital and entrepreneurial flight seen in recent years by ensuring vibrant capital growth and attracting investments in long-term productive assets, including reliable infrastructure and a robust manufacturing base. These initiatives must integrate India’s supply strengths with global economic demands, effectively filling policy gaps and removing unnecessary barriers to harness FDI and shore up the global supply chain.
Balasubramanian A, Vice President, TeamLease Services: Initiatives like providing easier access to financing and training in online marketing can help small businesses leverage e-commerce platforms and create significant job opportunities in e-commerce enabled MSMEs.
Also, a unified and simplified GST regime can create a level playing field and boost compliance, potentially increasing formalization in the retail sector by 15-20 per cent, impacting the sector by Rs 15,000-20,000 crore.
Sharad Pungalia, MD & CEO, Amplus Solar: MSMEs represent a significant demand sector, particularly for rooftop and residential solar projects. By integrating them more comprehensively into the financial system, we can significantly boost capacity additions and drive growth within the solar sector.