Budget 2024: Tax Relief to Increased Funding, MSME Sector’s Expectations from Finance Minister Nirmala Sitharaman

Budget 2024: The Union Budget 2024 will be presented by Finance Minister Nirmala Sitharaman on July 23, 2024. People in general have high expectations from this budget as it is the Modi 3.0 government's first budget. With regard to this budget, the MSME (Micro, Small, and Medium Enterprises) sector has high expectations. The Indian economy is believed to be supported primarily by the MSME sector. MSMEs are estimated to contribute roughly 45% of the nation's exports and 30% of its GDP.

Expectations of the MSME Sector

Need for More Funding

Experts associated with the MSME sector believe that the government has taken several important steps to address the funding needs of this sector. However, small enterprises still face considerable difficulties in securing funds. People in the MSME sector are hopeful that the finance minister will announce substantial measures to alleviate funding issues in this budget.

Demand for Lower Import Duties

Government sectors including public works, defence, and railroads should be required to set aside a quarter of their workforce for MSMEs, according to experts. Reducing import taxes and simplifying the loan application process for MSMEs are two important initiatives. Import taxes could be lowered to cut expenses, support domestic manufacturing in line with the 'Make in India' campaign, and improve export potential.

Expectation of Tax Relief

Several experts believe that while the MSME sector was previously performing well with support for industries, it has now slowed down significantly. Currently, the tax burden on MSMEs is substantial. They suggest that tax relief should be provided in the upcoming budget to help small entrepreneurs in the MSME sector grow and succeed.