The MSME sector in India has received a green boost in Finance Minister Nirmala Sitharaman’s seventh Union Budget for 2024-25.
The FM signaled financial support for conducting energy audits for MSMEs, which should lead to increased adoption of cleaner fuels.
“Investment-grade energy audits will initially be conducted for traditional MSMEs in 60 clusters including the glass and ceramic industry. In due course, 100 more clusters will be added,” she said.
The Finance Minister reiterated the government’s vision of establishing a fully functional ‘solar power value chain’ within the country.
She also included higher standard deductions, revised tax rates, and emphasis on supporting MSMEs with credit guarantee schemes and enhanced credit assessment models by public sector banks.
Besides the focus on the MSMEs, the budget focused on nine sectors comprising agricultural productivity, employment, social justice, production, city development, energy safety, infrastructure, innovation, R&D, and reforms for the next generation.
The DEI Push:
It included five schemes and incentives with an outlay of Rs 2 lakh crore to help 4.1 crore youth in five years with employment, skills, and other opportunities.
The FM allocated Rs 2.66 lakh crore for rural development, including rural infrastructure, and reduced the current Rs 10 lakh limit of mudra loans to Rs 20 lakh.
The government announced plans to review the agricultural research system, provide challenge mode funding to both the government and private sector, introduce 109 new, high-yielding, climate-resilient varieties of 32 crops, and introduce one crore farmers to natural farming over two years.
The government also aims to increase women’s workforce participation by establishing childcare facilities and women’s hostels in partnership with businesses.
It announced renewed thrust on programs like PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India to support the economic activities of craftsmen, artisans, self-help groups, scheduled castes, schedule tribes, women entrepreneurs, and street vendors.