The country is abuzz with expectations for Budget 2024, eagerly awaiting Finance Minister Nirmala Sitharaman’s presentation on July 23rd. Ahead of Budget 2024, there is a strong consensus among MSME stakeholders for significant reforms. Key expectations include increasing the credit guarantee fund for MSMEs.There is also a push for interest subvention schemes to lower borrowing costs, aiming to address liquidity challenges faced by MSMEs. Improving digital infrastructure is highlighted as crucial for expediting loan processing and reducing the high rejection rates of loan applications.
Atif Shamsi, CEO & Founder at OuchCart, anticipates significant measures to ease MSME financing in Budget 2024-25. He calls for enhancing the credit guarantee fund for micro and small enterprises to ₹3 lakh crore or more, potentially unlocking ₹4.5 lakh crore in additional credit. Shamsi emphasizes reducing interest costs on MSME loans (11-14%) through interest subvention schemes and implementing a risk-based lending model. He also expects an expanded digital infrastructure to improve loan processing efficiency and reduce the 40% rejection rate.
Other stakeholders share similar expectations:
Hariom Seth, Founder of Tagglabs, seeks increased allocation for the Fund of Funds for Startups to ₹15,000 crore and initiatives like PM Kaushal Vikas Yojana 4.0 for MSME workforce development.
Gurmit Singh Arora, National President of the Indian Plumbing Association, hopes to extend the Emergency Credit Line Guarantee Scheme and enhance MSME digital accessibility.
Raghunandan Saraf, Founder & 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 ₹22,137.95 crore allocation in the interim budget 2024 to empower MSMEs globally.
Samin Gupta, Director at Premier Roadlines, expects infrastructure enhancement to boost logistics efficiency and reduce costs.
Together, these expectations underscore the need for robust financial support, technological advancement, and policy reform to bolster the MSME sector in India.
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