The Confederation of All India Traders (CAIT) has put forth crucial recommendations for Budget 2024 to bolster the MSME sector. They propose the establishment of GST coordination committees at the district level to streamline problem-solving and expand the GST network. Aligning with the vision of “One Nation, One Tax,” CAIT advocates for a single license for businesses and a special income tax slab akin to that for companies. Urgent calls are made for the announcement of an e-commerce policy and the implementation of the National Retail Trade Policy.
Boosting Liquidity through Targeted Programs
Ramaswamy Iyer, Founder and CEO of Vayana, emphasizes the need for liquidity assistance programs similar to ECLGS for MSMEs. These initiatives can alleviate liquidity challenges, especially considering the thin margins and stretched working capital that MSMEs often contend with. To achieve ambitious export targets, cross-border trade finance facilitation is crucial, requiring amendments to the Negotiable Instruments Act for digital negotiable instruments.
Reduced Compliance and Financial Resilience
Rohit Arora, CEO and Co-founder of Biz2Credit and Biz2X, stresses the importance of simplified regulatory procedures and reduced compliance burdens for startups and MSMEs. Access to affordable credit remains pivotal, prompting the budget to consider incentivized lending rates, credit guarantee schemes, and increased funding channels. Targeted tax incentives for research and development activities can further foster innovation within these sectors.
Financial Inclusion and Support for Fintechs
Bipin Preet Singh, Co-founder and CEO at MobiKwik, anticipates the budget to drive financial inclusion by increasing the credit corpus for MSMEs. Extending support to microfinance institutions (MFIs) and small finance banks (SFBs) is crucial for meeting the financing needs of enterprises in remote areas. Incentives for fintechs catering to Tier 2 & 3 cities are expected, along with the scaling of AI innovation centers and increased investments in supercomputing to boost home-grown AI solutions.
Empowering Women in the Workforce
Lohit Bhatia, President of the Indian Staffing Federation, highlights the importance of supporting MSMEs in hiring women. Maternity benefits as a subsidy are proposed to ease the burden on MSMEs. To drive formalization in the employment of domestic workers, government incentives, such as tax rebates for contributing to formal employment and ensuring minimum wages, are suggested. This approach aligns with the government’s agenda to enhance opportunities for women in the workforce within the MSME sector.2 / 2
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Budget Twenty Twenty-Four: Addressing MSME Needs for Growth and Sustainability
Streamlined GST for Enhanced Revenue
The Confederation of All India Traders (CAIT) has put forth crucial recommendations for Budget Twenty Twenty-Four to bolster the MSME sector. They propose the establishment of GST coordination committees at the district level to streamline problem-solving and expand the GST network. Aligning with the vision of “One Nation, One Tax,” CAIT advocates for a single license for businesses and a special income tax slab akin to that for companies. Urgent calls are made for the announcement of an e-commerce policy and the implementation of the National Retail Trade Policy.
Boosting Liquidity through Targeted Programs
Ramaswamy Iyer, Founder and CEO of Vayana, emphasizes the need for liquidity assistance programs similar to ECLGS for MSMEs. These initiatives can alleviate liquidity challenges, especially considering the thin margins and stretched working capital that MSMEs often contend with. To achieve ambitious export targets, cross-border trade finance facilitation is crucial, requiring amendments to the Negotiable Instruments Act for digital negotiable instruments.
Reduced Compliance and Financial Resilience
Rohit Arora, CEO and Co-founder of Biz2Credit and Biz2X, stresses the importance of simplified regulatory procedures and reduced compliance burdens for startups and MSMEs. Access to affordable credit remains pivotal, prompting the budget to consider incentivized lending rates, credit guarantee schemes, and increased funding channels. Targeted tax incentives for research and development activities can further foster innovation within these sectors.
Financial Inclusion and Support for Fintechs
Bipin Preet Singh, Co-founder and CEO at MobiKwik, anticipates the budget to drive financial inclusion by increasing the credit corpus for MSMEs. Extending support to microfinance institutions (MFIs) and small finance banks (SFBs) is crucial for meeting the financing needs of enterprises in remote areas. Incentives for fintechs catering to Tier Two and Three cities are expected, along with the scaling of AI innovation centers and increased investments in supercomputing to boost home-grown AI solutions.
Empowering Women in the Workforce
Lohit Bhatia, President of the Indian Staffing Federation, highlights the importance of supporting MSMEs in hiring women. Maternity benefits as a subsidy are proposed to ease the burden on MSMEs. To drive formalization in the employment of domestic workers, government incentives, such as tax rebates for contributing to formal employment and ensuring minimum wages, are suggested. This approach aligns with the government’s agenda to enhance opportunities for women in the workforce within the MSME sector.
