So the budget got announced serving smiles on the face of small business owners due to the allocation of INR 20000 crores by government. While large business entities have a role to play, it needs to be complemented by small business enterprises which are generating the maximum employment. As per few studies, nearby 5.77 crore micro business units are there. Among which, sole proprietors running small manufacturing/trading or service businesses contribute the major part. 62% of these are owned by SC/ST/OBC.
Thinking of these hard working entrepreneurs who find it challenging to access formal systems of credit, Finance minister Arun Jaitley said that government will enhance credit facility to encourage the growth of small business units. Not only this, government would also allocate INR 20,000 crores through Micro Units Development Refinance Agency (MUDRA) Bank for the development of SME sector. FM also declared to allocate Rs 1000 cr for support of Start-ups.
Modi’s Government’s ‘Make in India’ initiative and its drive to expand the share of manufacturing to India’s GDP is expected to change the fortunes of the MSMEs in the country. Amidst focus on Digital India and Swachh Bharat Abhiyan will get the needed thrust to this sector.
These measures taken by government will largely increase the confidence of youths and skilled or educated workers who would be able to aspire to become 1st generation entrepreneurs now, also existing SMEs will be able to expand their activities too.
I invite all the SMEs to pen down your opinion here. Did you like the budget? Give your opinion about the budget in comment section.