Union Budget 2024 | Credit guarantee scheme will help MSMEs modernise their asset base, says Ashwin Jacob of Deloitte India

Finance Minister on Tuesday said the Budget provides special attention to micro, small & medium enterprises (MSMEs) and manufacturing, particularly labour-intensive units.

Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget 2024, highlighting the Modi govt 3.0’s priorities across multiple sectors.

Announcing a credit guarantee scheme for facilitating term loans for MSMEs to purchase machinery and equipment without collateral or third-party guarantee, FM said the Budget provides special attention to micro, small & medium enterprises (MSMEs) and manufacturing, particularly labour-intensive units.

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Here’s how industry stakeholders reacted:

"The government has continued to focus on revitalizing the MSME sector with a slew of measures announced. Specifically, from a manufacturing perspective, announcements around the credit guarantee scheme for machinery without collateral will help MSMEs modernize their asset base and manufacture in line with global quality standards. This will help them grow and, in turn, generate employment—a critical requirement for India given its young population," said Ashwin Jacob, Partner & Industry Leader, Energy, Resources & Industrials, Deloitte India.

He further added, "Additionally, doubling the limit for Mudra loans and reducing the threshold by 50 per cent for onboarding on the TReDS platform will further aid the growth of MSMEs. The government has also signaled financial support for conducting energy audits for MSMEs, which should lead to increased adoption of cleaner fuels. The Finance Minister reiterated the government's vision of establishing a fully functional 'solar power value chain' within the country."

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Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.