The Micro, Small & Medium Enterprises (MSME) sector is
expecting the upcoming budget to simplify taxation and investment and further
incentives for start-ups that can help in generating more revenue and
MSMEs are seeking measures to improve lending and accessibility of funds
that can mobilize growth. For the e-commerce industry, measures such as
streamlining approvals and compliance, quicker adoption of technology, and
automation by traditional retailers would be immensely helpful.
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Here are some
of the expectations the MSME sector has from the Union Budget:
Hopes for credit revival
NBFCs play an important role in supplementing the banking industry. The
budget is expected to provide a much-needed stimulus to revive credit
following the downturn last year.
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Higher budget for healthcare
There are high expectations for the healthcare sector in the budget,
which include a reliable medical cold chain for the success of NIP (National
Immunization Programme). This will ensure that the country is prepared to fight
any pandemic and other future crises.
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Atma Nirbhar Swasth Bharat Yojana
Last year, Finance Minister Nirmala Sitharaman launched the Atmanirbhar
Swasth Bharat Yojana, with an outlay of about Rs 64,180 crore over 6 years,
with a promise that “Progressively, as institutions absorb more, we shall
commit more”. The time has come to announce complete funding to reach
targets set in the National Infrastructure Pipeline 2020.
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Reduce GST on manufacturing
There are expectations from the government that the GST on manufacturing
for MSMEs will be rationalised. There are also demands that the GST on
manufacturing should be reduced to 12% from 18%.
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Support for the real estate industry
The budget could provide a push towards affordable and rental housing
and reinforcing the existing financing systems to provide liquidity to stuck
real estate projects.