Union Budget 2024: Sitharaman Unveils Pro-MSME Strategies; INR 1 Lakh Crore Innovation Corpus

In her sixth budget speech, Finance Minister Nirmala Sitharaman emphasized the government's commitment to supporting micro, small, and medium enterprises (MSMEs) in their global growth endeavors. Despite the absence of new announcements on credit access, technology adoption, or GST for small businesses, Sitharaman outlined key strategies during the Amrit Kaal for promoting the growth of MSMEs.

Addressing the importance of providing timely and adequate finances, relevant technologies, and appropriate training for MSMEs to compete globally, the Finance Minister highlighted the government's dedication to making these elements an integral part of its policy priorities. She also highlighted the significance of orienting the regulatory environment to facilitate the growth of MSMEs, emphasizing its crucial role in the overall policy mix.

Kanishk Maheshwari, Co-Founder & Managing Director of Primus Partners, emphasized the recognition of the pivotal role played by MSMEs and the necessity for them to compete globally, especially in a green economy. Maheshwari stressed the importance of a policy environment that caters to the specific needs of MSMEs, stating that India's ability to generate the required jobs and compete on a global scale is contingent on making its MSMEs competitive.

As a significant measure to spur research and innovation for catalyzing growth, employment, and development, Sitharaman announced the establishment of a corpus of INR 1 lakh crore with a fifty-year interest-free loan. The corpus aims to provide long-term financing or refinancing with extended tenors and low or nil interest rates, encouraging the private sector to substantially scale up research and innovation, particularly in sunrise domains, according to the Finance Minister's announcement.