With Union Budget 2024 around the corner, the e-commerce, and MSMEs sectors are crossing their fingers for measures that will fuel growth and sustainability.
Here’s a breakdown of their perspectives:
Ratish Pandey, Founder and Business Coach, Ethique Advisory
Despite solid efforts with year-end discounts, retail demand in specific sectors of the MSME sector remains subdued right from Diwali and continues to persist even now. Anticipating an Interim Budget, the Central Government is expected to introduce some populist measures.
However, it is crucial to acknowledge that recent results in State Elections may provide the governing party at the Centre with a sense of reassurance. With inflation under control, the Reserve Bank is not inclined to adjust interest rates. Funding challenges persist in the start-up sector, and while there might not be significant start-up-specific support, the introduction of sector-specific initiatives (e.g., FAME III) would be welcome.
Ashish Gupta, Head of Legal & Government Relations, eBay
At eBay, we eagerly anticipate the Union Budget 2024–2025, foreseeing a transformative era for India’s e-commerce sector, particularly in enhancing eCommerce exports.
We’re looking forward to a budget that streamlines business operations, promotes innovation in digital payments, and strengthens the logistics infrastructure, all while keeping a focus on supporting MSMEs through tax benefits and regulatory ease.
Building on the success of the previous year’s impactful Foreign Trade Policy, we’re optimistic about a budget that will position India prominently in the global e-commerce exports arena. Envisioning the budget as a catalyst, we aim for export-oriented policies to propel India’s e-commerce onto the global stage, fostering sustainable growth and international competitiveness.
Umesh Singh, Founder & Director, Tara Candles
The MSME sector eagerly anticipates the Union Budget, with a focus on key provisions crucial for our growth and sustainability. Foremost among our expectations is enhanced access to finance, including easier credit availability and lower interest rates to facilitate business expansion. In Tax reforms we are looking for Section 194R introduced last year April 2023 has made an impact on lower sales turnover to the MSME segment catering to the gifting industry leaving them in vulnerable conditions. This section should be reformed to boost the MSME gifting industry.
Infrastructure development remains a priority, urging increased funding for essential facilities like roads and logistics. We seek government support for technology adoption, innovation, and streamlined regulatory processes to ease operational complexities. Skill development initiatives and collaborations with educational institutions are essential to enhance our workforce capabilities.
Additionally, we advocate for export promotion, cluster development, and risk mitigation measures to boost competitiveness and resilience. Our commitment to environmentally friendly practices also prompts a call for incentives for sustainable operations. As economic conditions evolve, we emphasize the dynamic nature of our expectations, underlining the importance of a budget that addresses the ever-changing needs of the MSME sector. Business associations and industry groups continue to play a crucial role in articulating and advocating for our specific needs during budget discussions.