Catalyzing Growth in Manufacturing and MSMEs in Union Budget 2024-2025

The Union Budget 2024 has introduced a series of impactful measures aimed at propelling the manufacturing and MSME sectors to new heights. With a focus on credit support, infrastructure development, and technological advancement, the budget lays a solid foundation for sustainable growth and competitiveness.

Sunil Agarwal, Director, Vinod Cookware, highlighted the strategic focus on MSMEs, “The Union Budget 2024 is commendable for its strategic focus on strengthening Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of our economy. The allocation of INR 100 crore to the Credit Guarantee Scheme and the enhancement of the Mudra Loan limit to INR 20 lakh are decisive steps toward empowering small businesses. As for the manufacturing industry, the provision allowing MSMEs to acquire machinery without collateral is particularly noteworthy, as it paves the way for enhanced productivity and growth.

Moreover, the reduction in Goods and Services Tax (GST) rates and the simplification of compliance procedures underscore the government’s commitment to fostering a cohesive business environment. The planned expansion of the Small Industries Development Bank of India (SIDBI) with 24 new branches by 2025 is guaranteed to further support MSME clusters across the country. These measures collectively enhance the ease of doing business and provide a strong foundation for economic development. From the consumer’s standpoint, the new tax regime is expected to result in a reduction in income tax for salaried employees, offering significant relief to the middle class. This reduction in the tax burden is anticipated to increase savings and lead to a rise in consumer retail demand. We see these initiatives as a positive catalyst for growth and innovation. The expansion of Vinod Cookware is poised to benefit from these developments, further elevating our commitment to quality and customer satisfaction.”

Mr. Kushal Patel, Managing Director, Axita Cotton, commended the budget’s focus on industrial growth, “The Finance Minister announced the development of twelve new industrial parks under the National Industrial Corridor Development programme. These Manufacturing parks will be equipped with complete infrastructure, and ‘plug and play’ parks will be established in or near 100 cities. These provisions will significantly boost industries across the spectrum, and we commend the budget for its strong focus on industrial growth.”

Dhiren Jatakia, Head of Finance and Accounts, Covestro India, appreciated the progressive measures for MSMEs, “The Union Budget 2024 is a progressive step towards fostering economic growth and sustainability. Revamping the Tax structure & custom duty will bolster business confidence and investment in India. The focus on skill development, energy transition and the development of small modular nuclear reactors aligns well with our commitment to sustainability. Additionally, the enhanced support to MSMEs and the introduction of employment-linked incentives will significantly benefit our workforce and supply chain. Overall, the budget’s emphasis on innovation, infrastructure, and inclusive growth presents promising opportunities for Covestro India.”

Mr. Sagar Gupta, Director, Ekkaa Electronics, lauded the focus on job creation and manufacturing, “Speaking on Union Budget 2024-25 for the Consumer Electronics System Design and Manufacturing (ESDM) Sector, Director of Ekkaa Electronics, Mr. Sagar Gupta, said, ‘As our FM Nirmala Sitharaman outlaid the Modi 3.0’s first budget, and the 13th Budget of the Modi government, the FM brought the focus on job creation in manufacturing and additional employment is a significant step forward.

By providing incentives to both employers and youth, these schemes are poised to benefit 30 lakh young individuals, fostering a skilled and productive workforce. This approach by our government will drive economic growth, enhance global competitiveness, and ensure a brighter future for India’s youth and manufacturing sector. We are particularly encouraged by the special attention given to MSMEs and manufacturing, especially labour-intensive sectors. The emphasis on labour-intensive manufacturing and technology support will not only help these sectors grow globally but also generate substantial employment opportunities across various industries. The new formulated package covering financing, regulatory changes and technology support for MSMEs will help them grow and also compete globally. The introduction to facilitate term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee, a credit guarantee scheme, was great move by our FM.

We welcome the new scheme to skill 20 lakh youth through enhanced training institutes and industry-aligned curricula. The substantial ₹3 lakh crore allocation for women-centric initiatives demonstrates the government’s commitment to boosting women’s economic participation and supporting women-led enterprises, paving the way for inclusive growth. This support is crucial for sustaining high growth with next-generation reforms that cover all factors of production, including land, labour, and capital. We believe that collaboration between the Centre and States will be essential in implementing these reforms and achieving sustained economic growth. Additionally, the launch of a comprehensive scheme providing internship opportunities in 500 top companies to 1 crore youth over five years is a commendable initiative. At Ekkaa Electronics, we fully support these initiatives and are committed to leveraging these opportunities to foster innovation, growth, and employment within the industry.'”

The article was curated by Prittle Prattle News as an industry story.
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