Budget 2023: Key Announcements for MSMEs by Finance Minister

In Budget 2023, the Finance Minister has given a new gift to Micro and Small Scale Industries (MSMEs). Finance Minister Nirmala Sitharam has announced that all possible help will be provided to MSMEs affected by the pandemic. The Finance Minister said a voluntary settlement scheme would be implemented to settle contractual disputes. The central government has decided to allocate Rs 9000 crore to help the enterprises of the MSME sector.

An arrangement of Rs 9000 crore has been announced in the budget for the Credit Guarantee Plan. Under the new scheme, it has been announced to provide loans to the MSME sector of the country at a 1 per cent interest rate. Under the new scheme, an additional loan of Rs 2 lakh crore has been announced. According to the announcement of the Finance Minister, emphasis will be laid on reducing compliance costs in the financial sector. In her budget speech, Finance Minister Nirmala Sitharaman said, “MSEs are the growth engine of our economy.”

The Finance Minister has said in her budget speech that 30 Skill India International Centers will be set up. Finance Minister Nirmala Sitharaman said the government would start Pradhan Mantri Kaushal Vikas Yojana 4.0. Under this, 30 Skill India International Centers will be set up in different states to make youth skilled for international opportunities.

The Finance Minister has announced the PM Vishwakarma Kaushal Samman Yojana in his budget speech. The Finance Minister has said in her budget speech that traditional artisans and craftsmen working with the help of tools have brought laurels to India. They are generally addressed as Vishwakarma. Their artwork and handicrafts reflect the true spirit of self-reliant India. To help them, the government has announced a package. The new scheme will help them improve their products’ quality and connect with the MSME value chain.

In her budget speech, the Finance Minister said that entrepreneurship is very important for the country’s economic development. We have taken several measures for startups. India currently has the third-largest ecosystem for startups globally and the second-largest in terms of innovation among middle-income countries. The date of incorporation for startup income tax benefits has been extended by one year. Due to this, it has been increased from 31 March 2023 to 31 April 2024. In her budget speech, FM also said that if there is a change in the shareholding of the startup, the benefit payable for losses has been increased from seven years to ten years.