Small and medium industries have big expectations from Budget 2025-26
New Delhi| The micro, small and medium industries (MSME) sector has high expectations from the central government in the budget to be presented next month. This sector is demanding to reduce the increasing problems in business. Production Linked Incentive (PLI) scheme is implemented in many sectors related to MSME, but there is a demand to bring many businesses which are dependent on imports under the Production Linked Incentive (PLI) scheme.
Small and medium industries are demanding to involve government corporations along with big companies in making payments in 45 days under the rules made for payments (Section 43 B) stuck in MSME sector. Big enterprises buy from MSME industries, but do not make payments on time. Therefore its solution is necessary. A demand has also been made to the government to provide tax relief to MSME manufacturing units. If seen, this sector contributes more than 29 percent to the country’s GDP and this sector has an important role in providing employment. According to government data the MSME sector creates more than 360.41 lakh jobs out of 11.10 crore jobs.
Dipen Aggarwal, President of Chamber of Associations of Maharashtra Industry and Trade, says that to promote manufacturing in the country, there is a need to bring production linked incentive (PLI) scheme in many sectors, especially those businesses which depend on imports. This will boost the manufacturing sector in the domestic market, reducing dependence on the goods that are imported. Also, in the MSME sector, emphasis should be laid on providing easy loans to those sectors which provide maximum jobs, because despite the government’s policy of collateral free loans, MSMEs are still facing challenges in taking loans. Apart from this, banks charge high interest rates due to which businessmen face problems. At the same time, there is a problem of payment getting stuck in the MSME sector, in which most of the payments are not given by the government to the businessmen for purchasing goods, hence in the upcoming budget, the law made by the government regarding MSME payment, big companies and Not only businessmen but also corporations making government purchases should be included.
Traders say that we exporters have requested the government to continue the export promotion schemes – interest equalization, which ended on 31 December. Besides, additional funds for marketing and trade promotion for some export goods and tax relief for MSME manufacturing units have been demanded. Industry experts say that in this budget, the government is going to present a policy in the upcoming budget to help MSMEs in reducing carbon emissions. In which the focus will be on renewable energy and sustainable environment. For which a body is also likely to be formed.
Yogesh Jha, member of Mumbai Merchant Association, says, it should be made mandatory for banks to disclose the number and amount of collateral free loans given from time to time. Additional allocation or net provision is required to increase credit flow to MSMEs in the upcoming budget. Rajeev Singhal of Bharat Merchant Chamber said that as part of the skill development reform initiative, focus should be on building universities at the district level and creating integrated townships for MSMEs. This will give impetus to business.
