As the dust settles after Finance Minister Nirmala Sitharaman announced the interim budget for 2024 on February 1, voices from the MSME sector have elicited optimism and appreciation for the government’s strategic focus on key economic drivers.
Here’s a roundup of their reactions:
George Alexander Muthoot, MD, Muthoot Finance
FM’s interim budget is balanced from the point of view of adhering to fiscal prudence, boosting infrastructure growth, and prioritizing focus on four key sections of the economy – the poor, women, youth, and farmers. We believe the FM’s focus on higher outlay for infrastructure will help boost the broader economy and in the long term will boost investment activity.
The government’s support to MSMEs, women entrepreneurs, and the agricultural sector aptly aligns with our aim to provide credit support to MSMEs, small business owners, farmers, and women entrepreneurs thereby addressing their economic needs.
FM’s focus on addressing housing challenges by building two crore additional homes under the PM Awas Yojana-Grameen is certainly positive for boosting the housing sector. While inflation has been a concern globally, FM’s focus on staying on the path of fiscal prudence in the interim budget will surely be an enabler for a stable interest rate scenario in the economy and bodes well for the overall financial sector.
Ajay Nemani, Founder of FF21
We welcome the Finance Minister’s strategic vision for prioritizing the growth of the MSME sector. The emphasis on providing training to MSMEs will not only enhance global competitiveness but also cultivate a thriving ecosystem. Adequate funding for MSMEs is crucial for economic growth and we applaud the government’s recognition of this need.
As a coliving startup, we anticipate a positive impact on the real estate industry with increased demand due to the focus on job creation. The government’s commitment to infrastructure development further enhances the potential for real estate expansion. Improved infrastructure is a catalyst for attracting investors and driving sustained growth in the real estate sector.
Madhusudan Ekambaram, Co-founder and CEO, KreditBee
The reinforcement of the financial sector has significantly enhanced the efficiency of savings, credit, and investments. Ensuring timely and ample financial support, leveraging relevant technologies, and providing appropriate training for Micro, Small, and Medium Enterprises (MSMEs) are pivotal policy priorities for the government. This strategy aims not only to foster their growth but also to enhance their global competitiveness. Aligning the regulatory environment to facilitate the expansion of MSMEs will be a crucial aspect of this comprehensive policy framework.
Ankit Kumar, CEO, Skye Air Mobility
The India Budget 2024 heralds a powerful catalyst for our nation’s economic advancement. By extending concessional tax rates for new manufacturing units, fostering innovation receives a significant impetus. The strategic emphasis on training for MSMEs not only enhances competitiveness but also nurtures a vibrant entrepreneurial ecosystem, propelling Bharat towards global leadership.
The unwavering commitment to realizing a ‘Vikshit Bharat’ by 2047, coupled with the remarkable success of the Skill India Mission in elevating average income by 50%, underscores the profound impact of these initiatives on the nation’s growth trajectory. This budget’s unwavering focus on growth, inclusivity, and productivity not only aligns with our aspirations but also lays the groundwork for a flourishing Indian economy, poised to seize opportunities and surmount challenges on the global stage.
Krishan Gopal, CFO, Aye Finance
MSMEs are the backbone of the Indian economy, and we appreciate the government’s focus on empowering this sector with the budget announcement. The government’s commitment to training MSMEs for global competitiveness is a welcome step. This initiative will unlock opportunities for MSMEs to adopt cutting-edge technologies and solutions, propelling them into the new-age economy.
Aye Finance, with its deep understanding of the micro and small business landscape, is ready to participate in this endeavor by offering innovative financing solutions tailored to the specific needs of these businesses. The government’s emphasis on building consensus with stakeholders further strengthens our optimism. As a responsible lender, we actively engage with industry bodies and policymakers to create an ecosystem that enables MSMEs to flourish. We believe collaborative efforts are key to driving inclusive and sustainable growth.
Sriram Kanuri, CEO & Director, Arteria Technologies
Following the government’s budget pronouncements on empowering MSMEs and driving infrastructure development, Arteria is excited about the collaborative focus on technology and growth. By providing timely finances, relevant technologies, and essential training, we contribute to the MSME sector’s global competitiveness.
With the rapid expansion of digital, social, and physical infrastructure, Arteria is ready to contribute to this transformative journey by utilizing our Innovative FinessArt product to support the MSME sector and the country’s overall progress.
Umesh Singh, Founder & Director, Tara Candles
As a proud founder in the vibrant landscape of MSMEs and retail, I commend the visionary step of increasing the threshold for presumptive taxation to Rs 3 crore. This pragmatic policy shift not only empowers small businesses but also fosters a conducive environment for growth.
Furthermore, placing a policy priority on providing training for MSMEs underscores a commitment to global competitiveness. By investing in the skills and knowledge of our entrepreneurs, we pave the way for a resilient and globally competitive MSME sector. Together, these initiatives propel us towards a future where our businesses thrive, contributing substantially to the nation’s economic tapestry
Mandeep Arora, MD & Co-founder, UBON
The government’s focus on empowering the MSME sector is evident. The commitment to providing timely and adequate finances, relevant technologies, and training is welcomed. The emphasis on orienting the regulatory environment to facilitate MSME growth indicates a supportive policy framework. The increased threshold for presumptive taxation from ₹2 crore to ₹3 crore is seen as a positive step, providing relief to small retail businesses, and allowing them to focus on growth and development.
In alignment with the ‘Panchamrit’ goals, the founder notes the government’s focus on sustaining high and resource-efficient economic growth. The commitment to energy security is perceived as a positive step, ensuring availability, accessibility, and affordability for businesses. To meet investment needs, the founder appreciates the government’s commitment to preparing the financial sector in terms of size, capacity, skills, and regulatory framework. This will contribute to a robust financial ecosystem that can support the growth aspirations of both MSMEs and retail businesses.
