Pre-Budget 2025 Quote on MSME Priorities for Union Budget 2025 by Gaurav Maulikhi, Solv
Below the Quote on Pre-Budget 2025 Quote on MSME Priorities for Union Budget 2025 by Gaurav Maulikhi, Solv
“We anticipate that the Union Budget 2025 will address some of the longstanding issues and unlock the true potential of India’s MSME sector, which accounts for nearly 30% of the nation’s GDP and 40% to its exports. A major issue currently is the persistent problem of delayed payments, highlighted by over 2.18 lakh applications filed on the Samadhaan portal since its inception in 2017. Despite the introduction of incentivized payments, the issue persists, underscoring the need for a robust framework to address it effectively. Such a framework would ensure timely payments, eliminate working capital constraints, and significantly improve the operational efficiency of MSMEs.
Skill development is another key area that requires attention. Substantial budgetary allocations for programs in digital literacy, supply chain optimization, and financial management can boost MSMEs' competitiveness in the global economy. Furthermore, affordable and timely access to financing remains a priority, given the sector’s estimated credit gap of Rs.20 to Rs.25 trillion. Initiatives like the Emergency Credit Line Guarantee Scheme (ECLGS) and Partial Credit Guarantee Scheme (PCGS), along with simplified credit disbursal, can provide financial support to MSMEs, especially in tier 2 and tier 3 regions.
The expectations from the Union Budget 2025 is poised to lay a strong foundation for MSMEs' sustainable growth, ensuring their global competitiveness, and reinforcing their role in India's economic progress. Advancing digital transformation through targeted incentives and funding for technology adoption will enable MSMEs' productivity, automation, and sustainable growth. Furthermore, simplifying regulations and compliance will streamline operations and drives innovation” .
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