The Union Budget aims to boost the MSMEs Sector

The Union budget presented by Finance Minister Nirmala Sitharaman focuses on digital transformation, sustainability and leveraging private investments. There are multiple reasons for the MSMEs sector to celebrate, it is not only a relief for the sector but also a financial boost from the SMEs. 

MSMEs, the growth engine of Atmanirbhar Bharat, is gearing up for a more digital-savvy year ahead with interlinked portals like Udyam, e-Shram, NCS and ASEEM, which will deepen their integration with the organised ecosystem. This will help credit facilitation, enhance ease of doing business, and provide impetus to the entrepreneurial spirit in the country. Continuing its efforts to support the growth of the pandemic-impacted MSME sector, the Union government has increased the corpus of the Emergency Credit Line Guarantee Scheme (ECLGS) by 50,000 crores, taking the total corpus to5 lakh crore, extending the validity of the scheme to March 2023 and added sectors like hospitality among the beneficiaries. First introduced in May 2020, ECLGS has been among the key schemes of the government helping MSMEs regain their lost glimmer post-pandemic.

Here is a reaction from Global Alliances for Mass Entrepreneurship (GAME) on the same: 

“It is heartening to see a slew of measures in the budget that help MSMEs grow directly and indirectly. The 7-engined PM Gati Shakti initiative is a significant investment in physical infrastructure, and with the emphasis on rural infra, it will accelerate an environment for entrepreneurship to thrive and boost job creation. The announcement on blended financing for Agri and rural enterprises will provide an impetus to take the power of entrepreneurship into rural India. The extension of ECLGS and attention to Delayed Payments which have been keenly awaited will provide immediate to mid-term relief for the sector.  Other steps that will add up to build India’s entrepreneurial story include promoting critical thinking (a key entrepreneurship trait) amongst students, a series of initiatives on accelerating our digital economy and the emphasis on sunrise sectors like clean energy”, said Madan Padaki, Co-founder, Global Alliance for Mass Entrepreneurship (GAME)

“Upgradation of 2lakh Anganwadi Centres in the Saksham Anganwadi scheme has the potential to cover more than 20 crore women in the lower-income segment. A tech-enabled AWC powered by clean energy would not only aid in child development, but an extension of these centres in the form of credit and market linkages will spur microentrepreneurship and employment opportunities for women in their vicinity,” said Sanjana Govindan, Vice President Women Entrepreneurship, Global Alliance for Mass Entrepreneurship (GAME).