Budget 2023-24 gives a boost to fund-starved sectors: MSME Secy

Credit and Finance for MSMEs: The MSME Secretary, B B Swain said that the launch of a revamped credit guarantee scheme worth Rs 9,000 crore for MSMEs in the Budget 2023 would enable collateral-free credit of Rs 2 lakh crore loans to small businesses.

Written by MSME Desk

Updated: February 9, 2023 16:00 IST

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Swain was addressing a session at the launch of the ongoing three-day Indian Foundry Congress (IFC) and India Foundry Equipment Exhibition (IFEX), organised by the Institute of Indian Foundrymen (IIF).

Credit and Finance for MSMEs: The government in the Union Budget 2023-24 has given a boost to the fund-starved, MSME sector by enabling higher credit flow and simplifying compliances, said B B Swain, Secretary to the Union Ministry for Micro, Small and Medium Enterprises (MSMEs), reported PTI. The minister also assured that the centre is acknowledging the contribution of MSMEs in the country’s economic growth.

Swain was speaking at the launch of the ongoing three-day Indian Foundry Congress (IFC) and India Foundry Equipment Exhibition (IFEX) on Wednesday, organised by the Institute of Indian Foundrymen (IIF) at the India Expo Centre in Greater Noida.

Also Read: Budget 2023: Experts suggest strengthening existing schemes to boost MSME credit access

He said that the main challenges of the MSME sector are related to – availability, accessibility and affordability of credit/funds.

“The government has acknowledged the contribution of MSMEs to the economic growth of the country. Union Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances,” Swain said.

Referring to the launch of a revamped credit guarantee scheme worth Rs 9,000 crore for MSMEs in the Budget 2023, he said that it would enable collateral-free credit of Rs 2 lakh crore loans to small businesses.

“Moreover, by reducing the guarantee fee to 1.3 per cent, the government has eased collateral credit/funding for the MSMEs. This will go a long way to support the sector. These measures can be game changers,” he said.

There are also several benefits from the government for the MSMEs catering to the foundry industry (metal casting industry), said Swain. “Over 15,000 MSMEs (out of 5 crore from all sectors) from the foundry industry play the role of a powerful catalyst in making India one of the largest producers and exporters of casting products in the world,” he added.

Also Read: Budget 2023: Fixing MSMEs’ delayed payments, credit, GST related issues must, say experts

The event saw participation from foundry producers, importer countries and their exhibitors to participate in the event. Russia, Iran, the United States, the United Kingdom, Kingdom of Saudi Arabia, Malaysia, Germany, the UAE (United Arab Emirates), Belgium and Bhutan and others are exhibiting their technologies, innovations and sustainability solutions.