The interim budget has focused on two key elements — the farmers and the urban middle class with most of the direct and indirect benefits targeted at this segment. For micro, small & medium enterprises (MSMEs), which are critical, large-scale growth engines of the economy, other than the interest subvention scheme and a few changes in the GST structure which is expected to help drive Capex and generate employment, there is no such relief in sight for the MSME sector. Here are the few hits and misses of the current budget.
The hits
The miss
The major disappointment for the sector would be that there was nothing done to ease the credit issues. According to the Economic Survey 2017-18, data on credit disbursed by banks shows that out of total outstanding credit of Rs 26,041 billion as in November 2017, 82.6% of the amount was lent to large enterprises and MSMEs got only 17.4 % of total credit. The recent turmoil in the NBFC sector has added to the pressure. The interim budget made no efforts to ease credit-linked issues.
Overall the interim budget has tried to provide some sops to the MSME sector and reduce the burden on this sector. We have seen a lot of expansion projects, new plant setup, new product design, etc being shelved or put on hold solely due to lack of credit facilities. SolutionBuggy has been able to get some funding agencies to get in touch with these entrepreneurs and help them with the credit facility. In case you are interested to know how SolutionBuggy has been instrumental in connecting the industries with the right consultants in various stages of operations then learn more here…
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