Finance Minister Nirmala Sitharaman Discusses Budget with MSME Representatives
On June 21, Finance Minister Nirmala Sitharaman chaired the fifth Pre-Budget Consultation in New Delhi. The meeting aimed to gather important inputs from the Micro, Small, and Medium Enterprises (MSME) sector for the upcoming General Budget 2024-25.
Key Discussions
Sandeep Jain, representing the Federation of Indian Small and Medium Enterprises (FISME), stressed the need for complete digitization of the funding process and the elimination of discretionary powers held by bankers. He also discussed concerns related to GST in sectors like ceramics, TV, and textiles.
Murali Krishna Vasireddy, President of the Federation of Andhra Pradesh Small and Medium Industries Associations (FAPSIA), highlighted the challenges faced by MSMEs in Andhra Pradesh, especially post-COVID-19. He called for simplified taxation, reduced compliance burdens, and tax exemptions for MSMEs involved in significant government projects.
Ghanshyam Ojha and Om Prakash Gupta from Laghu Udyog Bharti presented a detailed agenda for strengthening Micro and Small Enterprises (MSEs). They emphasized the need for prioritizing MSEs in manufacturing to transform India into an export hub and achieve ‘Atmanirbhar Bharat’.
Proposals and Suggestions
- Establishing a robust system for identifying MSEs
- Addressing working capital issues
- Creating a dedicated grievance redressal mechanism
- Easing land conversion laws for MSMEs
- Providing consistent and subsidized electricity rates
- Enhancing support for MSME exports
- Tax deductions for internationalization of MSMEs
- Cluster-based financing strategies
- Simplified Udyam Aadhaar registration
- Uniformity in labor law thresholds
The meeting was attended by Union Minister of State for Finance, Pankaj Chaudhary, Finance Secretary, Secretary of Expenditure, and other key officials, underscoring the government’s commitment to addressing MSME challenges.