Union Budget 2024-25: MSMEs Advocate for Rs 5,000 Crore Export Boost

The India SME Forum, representing small and medium businesses, has proposed the allocation of a dedicated Rs 5,000 crore fund to enhance export capacities, promote, and market Micro, Small & Medium Enterprises (MSMEs) in its Budget suggestions.

With a membership exceeding 98,000, the forum emphasized the critical need to augment India's global competitiveness by facilitating 3-4 lakh first-time MSME exporters. This initiative aims to bolster India's market share in global exports.

Additionally, the forum recommended establishing an export promotion and development body to support MSMEs with market intelligence, trade opportunities, and business-to-business (B2B) connections. They drew parallels with global counterparts like the US Commercial Service and Japan's JETRO to advocate for similar promotional efforts for Indian products abroad.

Vinod Kumar, President of the India SME Forum, underscored the importance of a widespread export familiarization program, akin to initiatives in China, Taiwan, Vietnam, and South Korea. Such programs are pivotal in enabling MSMEs to participate in sectoral exhibitions abroad.

Furthermore, the PHD Chamber of Commerce and Industry proposed concessions for Public Sector Undertakings (PSUs) and large companies joining the Trade Receivables Discounting System (TReDS). This includes facilitating additional funding for large companies by banks to ensure prompt payment realization for MSMEs.

Sanjay Nayar, President of ASSOCHAM, highlighted the necessity of establishing MSME universities with specialized courses to enhance competitiveness globally. These universities would provide crucial training in technology adoption, financial management, and compliance with international standards.

To enhance the creditworthiness of informal enterprises, the recommendation was made to mandate GST registration for all businesses, regardless of turnover. This measure aims to create a comprehensive digital footprint of financial activities, aiding lenders in assessing creditworthiness. Lastly, to promote Geographical Indications (GIs) products, SME bodies proposed the creation of a Rs 500 crore fund.

This initiative seeks to strengthen and popularize Indian GIs globally through specialized agencies focused on enterprise acceleration and global promotion. These recommendations are poised to support MSMEs in expanding their footprint in global markets and enhancing their competitiveness on a broader scale.