Now that the newly elected NDA government led by Prime Minister Narendra Modi is all set to announce the formation of the ministry allocations; several changes in the policies are expected to encourage job creation, entrepreneurship, and businesses. CNBC-TV18 has said that at least nine major changes could be made out of which some may enter the July budget.
Financial Assistance and Ease of Access to Credit for MSMEs
Some of the expected measures include increasing exposure guarantee for MSME loans; linking MSMEs to PLI schemes; and institutionalizing a new entity to enable and promote credit to small businesses to boost exports.
Restructuring Innovation and Funding for It
More steps could involve changes to the Atal Innovation Mission to focus on starting up & job creation, larger budgets for the aspirational district’s program, and other measures to boost MSMEs. Industries and traders believe that more needs to be done by Prime Minister Modi in terms of easing the rules and expanding the PLI schemes so as to help foster Industry and trade productivity according to Vijay Kalantri, Chairman of MVIRDC World Trade Center, Mumbai.
Overcoming payment delays and legislation changes
Another expected adjustment relates to the existing 45-day payment regulation affecting MSMEs as far as delayed payment is concerned. Last month while speaking to Micro Small and Medium Enterprises in Ludhiana, Finance Minister Mrs. Nirmala Sitharaman hinted that the government could rollback recent changes to Section 43B of the Income Tax Act in the full budget, to address concerns of unpredictable payment terms with buyers.
Extension of Due Dates for Payments to MSMEs
Moreover, Jayendra Tanna, FAIVM President of the Federation of All India Vyapar Mandal, recently said that the body will compel the new NDA government to increase the payment period given by their buyers for MSMEs to 180 days from the current 45 days.
Full Support for Business Development and Employment Opportunities
The following are the anticipated policy shifts proposed by the Modi government designed to improve the business climate for MSMEs, increase exports, and create employment – factors that collectively help foster overall economic development.
