Budget 2023: Four key areas that need direct attention to boost MSME's growth

At a time when the global economy is undergoing a slowdown in the wake of geopolitical issues, the upcoming Budget can be expected to bring some relief to various sectors, especially the Micro, Small and Medium Enterprises (MSME). This sector contributes 33 percent of India’s gross domestic product (GDP) and creates 120 million jobs across all industries, making it the country’s backbone. Currently, it also faces several challenges on multiple fronts that hamper the sector’s growth and prevents it from achieving its true potential. In this context, reforms are expected in areas like labour, skill development, tax structures, and healthcare. Small and medium-sized businesses have high expectations from Finance Minister Nirmala Sitharaman. The Government of India is taking steps to promote manufacturing in the country by simplifying and modernizing labour regulations by replacing 29 existing laws with four new codes. The government aims to position India as an attractive destination for manufacturing and investment. To support this goal, the government has launched a program to provide infrastructure, including multimodal connectivity, for new manufacturing hubs. Additionally, the Startup India initiative aims to create a supportive environment for innovation and new businesses, driving economic growth and creating jobs. Skill development for Millennials and Gen Z The government, both at the state and central level, is implementing a skill development program that targets individuals at various education levels, from K-12 to post-graduate, to prepare them for the global market. In the previous Union Budget, the government announced plans to establish a world-class digital university and an e-portal called DESH-Stack for upskilling, reskilling, and cross-skilling to position India as a leading talent hub. Additionally, private companies are also investing in training and development to compete in the international market. Tax slabs for startups In the last Union Budget, the Central government introduced a provision that allows startups incorporated between April 1, 2016, and March 31, 2023, to claim tax benefits for three consecutive years within the first 10 years of their operations. This move aimed at supporting the growth of new firms and promoting the addition of new employees, particularly in light of the impact of the pandemic on startups. With the upcoming Budget, it is expected that the government will continue to promote innovation and digital technology to support the growth of new-age companies in India. Mental health for employees It is enlightening to see the government taking several initiatives around mental health, including the laudable National Tele Mental Health Program. However, looking at the pace at which the number of mental health cases (anxiety, depression, and neurological illnesses) is rising in our country, especially after the pandemic, more needs to be done in this space. In the previous financial year, Rs 670 crore, which is only 0.8 percent of the total health budget, was allocated for mental health. More balanced funding for mental health programs and enhanced health infrastructure is thus paramount to addressing this pressing concern. Conclusion The MSME sector has registered immense growth in the last few years. And with the expectations being met, it will seamlessly walk on the path of progress. We will likely see more innovations across industries that will accelerate India’s overall growth engine and make it resilient to future uncertainties. The writer is Director, CFO and C-Founder, InCruiter-HR Tech startup. Views expressed are personal Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.