The Union Budget 2024 has introduced several significant measures aimed at bolstering the growth and development of Micro, Small, and Medium Enterprises (MSMEs) in India. These initiatives focus on enhancing access to finance, expanding market opportunities, and promoting innovation within the MSME sector.

Enhanced Access to Finance

• Credit Guarantee Scheme: A new credit guarantee scheme has been proposed to facilitate access to term loans for manufacturing MSMEs. This scheme aims to reduce the financial barriers that many MSMEs face when expanding or upgrading their operations.
• Improved Credit Assessment: Public sector banks will now develop more modern and inclusive methods for assessing MSME loan applications, potentially making it easier for a wider range of MSMEs to access credit.
• Support During Tough Times: A new framework has been introduced to support MSMEs during periods of financial stress, ensuring uninterrupted credit flow to businesses experiencing temporary setbacks.
• Increased Mudra Loan Limit: The maximum Mudra loan limit under the ‘Tarun’ category has been increased to ₹20 lakh for eligible borrowers, providing more substantial financial support to growing businesses.

Expanded Market Opportunities

• Trade Receivables Discounting System (TReDS): The turnover threshold for mandatory buyer onboarding on TReDS platforms has been lowered, expanding the platform’s reach and helping more MSMEs manage their working capital effectively.
• Expanded SIDBI Services: The Small Industries Development Bank of India (SIDBI) will expand its presence nationwide, enhancing its ability to provide direct credit services to MSMEs in various regions.
• Support for Food-Related MSMEs: The government will provide financial support to establish food irradiation units and quality testing labs, helping food-related MSMEs meet regulatory standards and improve product quality.
• International Market Access: E-commerce export hubs will be established to facilitate international market access for MSMEs and traditional artisans, opening up new revenue streams.

The Union Budget 2024 has demonstrated a strong commitment to the growth and development of the MSME sector. These initiatives are expected to provide a significant boost to MSMEs, enabling them to thrive and contribute meaningfully to the Indian economy.