“It is an important policy priority for our government to ensure timely and adequate finances, relevant technologies and appropriate training for the Micro, Small and Medium Enterprises,” Sitharaman said while announcing the interim Budget 2024-25. The government has allocated Rs 22,137 crore to the MSME ministry for FY25, which is the same as last year.
As of February 1, 2024, 2.29 crore MSMEs have been registered with the Udyam portal.
“Orienting the regulatory environment to facilitate their growth will be an important element of this policy mix.” she said.
Her statement comes after the government introduced a slew of reforms to support MSMEs like Emergency Credit Line Guarantee Scheme (ECLGS), TReDS to address the delayed payments for MSMEs and extension of non-tax benefits for three years if there is an upward change in MSME status.
Last budget, the government had come out with schemes such as returning 95% of the forfeited amount relating to bid or performance security if MSMEs failed to execute contracts as the pandemic had battered the MSME industry and a revamped credit guarantee scheme for MSMEs with Rs 9,000 crore infusion in the corpus was also announced.
“For next-generation reforms, the government is looking to work closely with stakeholders and states which will enable timely finance required for the purpose of relevant technology and facilitation of regulatory environment for sustainable development for MSME,” said Manmeet Kaur, partner, Karanjawala & Co.
The government also introduced a voluntary settlement scheme with standardised terms, for settling contractual disputes in cases where the government is a party, and an arbitral award has been challenged in courts.
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