The Union Budget 2024 has introduced various important steps needed towards increasing the growth and development of Micro, Small, and Medium Enterprises in India. Being an important sector contributing to the economy of the country, measures focused on the improvement of this segment in the latest budget, with recent initiatives and improvements made to enhance operational efficiency and financial stability. Below are the key highlights of the Union Budget 2024 that directly impact the MSME space.
1. Credit Support and Financial Inclusion
One of the key announcements coming out of the Union Budget 2024 for the MSME sector is related to the enhancement in the fund allocation under CGTMSE. This will possibly provide much-needed credit support to small businesses to ensure that they are able to access affordable loans without posting a high level of collateral. Additionally, the government has taken up plans to focus on digital payments and the digitization of MSME transactions in order to achieve financial inclusion.
2. Tax Relief Measures
The budget introduced various tax reliefs meant to ease the financial burden on MSMEs, the main one being the cut in corporate tax rate for companies that have a turnover of up to ?250 crore, which are now to be taxed at a reduced rate. This will likely leave more money in the hands of business owners for reinvestment and growth. Further, the simplification of GST compliance for small businesses will be proposed to reduce the administrative load and enable MSMEs to concentrate more on growth.
3. Innovation and Skill Development
The Union Budget 2024 made huge monetary expenditures to develop such skills for innovation and the skill set of the workforce. The schemes are aimed at providing the best skills available in the sector, whether pertaining to the MSMEs or other sectors, in order to increase productivity and remain competitive both within and outside the country.
4. Green Initiatives Incentives
Given the vast importance of the budget, sustainable development means many incentives for MSMEs when they consider eco-friendly best practices and financial assistance with tax benefits would flow to the businesses for investment in technologies that are seen as green, thereby supporting yet another larger agenda of carbon neutrality.
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Summing Up
The Union Budget 2024 is likely to be highly positive for MSMEs in terms of strategic measures for growth, financial stability, and sustainability. Through this budgetary proposal, there is a clear commitment.
It is those who are going to face the changes and make the most of the new opportunities that need complete training and resources for survival in this changing scenario more than ever before. Six Sense provides comprehensive training and resources to help MSMEs thrive in this evolving landscape.
