Pune based MSME industry leaders have welcomed the Union Budget 2024-25 presented by Union Finance Minister Nirmala Sitharaman on July 23. Industry has welcomed the decision of reducing turnover threshold for mandatory onboarding on the TReDS platform, but expressed their concerns that late payments issue may remain unresolved despite this move.
Anurag Garg, Country Head & Managing Director, Vitesco Technologies India said, "Initiatives such as the credit guarantee scheme and reduction in customs duties on critical raw materials, are poised to strengthen India's manufacturing ecosystem.
These measures will not only incentivize additional employment in the manufacturing sector but also provide the necessary financial and technological support to MSMEs, allowing them to compete globally and contribute significantly to the economy.
Establishment of investment-ready industrial parks and the reduction of input costs through customs duty cuts will boost domestic manufacturing and export competitiveness. We look forward to leveraging these opportunities to drive sustainable growth and technological advancement in the automotive industry."
Mahesh Viswanathan, Deputy CEO and CFO, Finolex Cables Ltd said, "Introduction of a credit guarantee scheme for term loans on machinery and equipment purchases, without collateral or third-party guarantees, is a progressive step that will empower MSMEs to innovate and expand.
We also applaud the efforts to bolster housing and infrastructure development, along with the focus on Digital Public Infrastructure. These sectors are essential for driving economic growth. As the budget prioritizes expanding the manufacturing footprint, we anticipate a corresponding increase in consumer uptake.”
Dr Sudhir Mehta, Founder and Chairman EKA Mobility, Pinnacle Industries said, "By reducing the turnover threshold for mandatory onboarding on the TReDS platform from Rs 500 crore to Rs 250 crore, the government is making it easier for smaller MSMEs to benefit from this essential online platform. Additionally, opening 24 new SIDBI branches will enhance support for MSME clusters across the country."
While, in agriculture, the allocation of ₹2.66 lakh crore for rural development and the focus on climate-resilient crop varieties reflect a forward-thinking strategy.
The initiative to introduce 1 crore farmers to natural farming over the next two years, supported by certification and branding, will contribute significantly to the sector’s sustainability and productivity.”
This may lead to revisiting their prioritization of repayments allowing MSMEs to give importance in clearing B2B dues. However, the problem of late payments is not going to be solely addressed by this.
Winny Patro, CEO and Co-Founder, Recordent India said, "What is encouraging for MSMEs from this budget is the credit assessment for availing loans emphasizing higher weightage for Turn-over and Assets.
But, some marginal respite for those looking forward to easing their working capital and cash-flow issues."
