Indian FM announces benefits for MSMEs, ELS cotton in Budget 2023-24

“To enhance the productivity of ELS cotton, we will adopt a cluster-based and value chain approach through Public Private Partnerships (PPP). This will mean collaboration between farmers, state and industry for input supplies, extension services, and market linkages,” Sitharaman said in her speech.

Under the PM VIshwakarma KAushal Samman (PM VIKAS), for the first time, a new package of assistance has been conceptualised for traditional artisans and craftspeople.  The new scheme will enable them to improve the quality, scale and reach of their products, integrating them with the MSME value chain. The components of the scheme will include not only financial support but also access to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments, and social security. This will greatly benefit the Scheduled Castes, Scheduled Tribes, OBCs, women and people belonging to the weaker sections.

To provide relief for MSMEs, under the Vivad se Vishwas I, in cases of failure by MSMEs to execute contracts during the COVID period, 95 per cent of the forfeited amount relating to bid or performance security, will be returned to them by government and government undertakings.

The finance minister also announced that an Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed, with various authorities, regulators, banks and other business entities.

The minister said that the digital ecosystem for skilling will be further expanded with the launch of a unified Skill India Digital platform for enabling demand-based formal skilling, linking with employers including MSMEs, and facilitating access to entrepreneurship schemes.

The minister also announced that the revamped credit guarantee scheme for MSMEs will take effect from April 1, 2023 through infusion of ₹9,000 crore in the corpus. “This will enable additional collateral-free guaranteed credit of ₹2 lakh crore. Further, the cost of the credit will be reduced by about 1 per cent,” Sitharaman said.

Further, stating that MSMEs are growth engines of the country’s economy, the minister announced that “micro enterprises with turnover up to ₹2 crore and certain professionals with turnover of up to ₹50 lakh can avail the benefit of presumptive taxation. I propose to provide enhanced limits of ₹3 crore and ₹75 lakh respectively, to the taxpayers whose cash receipts are no more than 5 per cent. Moreover, to support MSMEs in timely receipt of payments, I propose to allow deduction for expenditure incurred on payments made to them only when payment is actually made.”

Fibre2Fashion News Desk (RKS)