Budget 2022

Union Budget 2021 | MSME sector sees higher outlay

The Union Budget presented on Monday has doubled the allocation to micro, small and medium enterprises (MSMEs) to ₹15,700 crore for the next financial year.

The Budget estimates for the sector for 2020-2021 was ₹7,572 crore.

Majority of the allocation for 2021-2022 is for the Emergency Credit Line Guarantee Scheme.

Industry sources pointed out that the government had announced the scheme to help MSMEs revive when the lockdown restrictions were relaxed and several MSMEs had benefited from it.

Among the other segments, entrepreneurship and skill development programmes for the MSMEs would witness higher allocation.

Further, the government has proposed to allocate ₹300 crore towards the establishment of new technology centres for the MSME units.

According to the Federation of Indian Micro and Small & Medium Enterprises (FISME), reduction in Customs Duties on steel and ferrous and non-ferrous scrap is a major direct benefit to the MSMEs as it will help reduce the raw material prices. This was one of the main demands of the sector.

The Coimbatore District Small Industries Association has said that the announcements that the NCLT framework will be strengthened, e-courts system will be implemented, and alternate methods of debt resolution and special framework for MSMEs will be introduced are significant for the sector.

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Printable version | Jan 29, 2022 2:08:03 PM | https://www.thehindu.com/business/budget/union-budget-2021-msme-sector-sees-higher-outlay/article33721309.ece

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