Pre- Budget expectation quote - Mr. Rohit Mali, Director, Firefly Fire Pumps

Mr. Rohit Mali, Director, Firefly Fire Pumps commented, “The MSME sector received crucial support from the previous year's budget. In 2023, the government demonstrated proactive efforts through initiatives such as the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) and the Production Linked Incentive (PLI) schemes, providing essential liquidity and boosting manufacturing. The introduction of the Udyam portal further streamlined the MSME registration process, reducing red tape and facilitating the formalization of new businesses. Despite these positive steps, the industry grapples with obstacles like rising input costs, supply chain disruptions, and the persistent shadow of global economic uncertainty. These challenges persist, creating anticipation for more robust measures in the upcoming 2024 budget.

The 2024 budget will be a crucial opportunity to solidify 2023's gains and propel the MSME sector towards a brighter future. We are confident that the government will address existing gaps and collaborate closely with the sector to build an 'Atmanirbhar Bharat'.

Increasing the allocation of funds for schemes like Raising and Accelerating MSME Performance (RAMP), other schemes would provide major financial and technical support to MSMEs. Also, continuing support for the Production Linked Incentive (PLI) in vital sectors, expanding the scope of the Emergency Credit Line Guarantee Scheme (ECLGS), and investigating alternative financing avenues holds the potential to address the credit gap for MSMEs. This, along with targeted fiscal incentives for technology upgrades, digital solutions, and capacity building, can boost them towards cleaner materials and sustainable manufacturing practices.  Through tax breaks and R&D grants, MSMEs possess the capacity to make substantial contributions to India's GDP, facilitate job creation, lead in environmental leadership, and drive innovation. The forthcoming budget carries great importance for the MSME sector, providing a crucial opportunity to unleash its complete potential. By giving priority to affordable financing and technical training for these 60 million businesses, which form the backbone of our economy, we can pave the way for a sustainable, export-oriented future for MSMEs.