Reactions from industry captains on MSME-related announcements in the current Budget that will have a bearing on allied retail businesses
New Delhi: Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023, the fifth budget of Modi 2.0 on February 1, 2023. In the last full-fledged Budget before the general elections next year, Sitharaman presented a budget that many consider could lead India onto the growth path of the future. Sitharaman announced major changes in tax slabs under the new tax regime that would put more money into the hands of the middle class and that brings cheers to many businesses from FMCG companies to retailers.
This Budget hopes to build on the foundation laid down in the previous Budget, and the blueprint drawn for India@100. “We envision a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes,” said Finance Minister, Nirmala Sitharaman in her Budget speech.
She further added, “In the 75th year of our Independence, the world has recognised the Indian economy as a ‘bright star’. Our current year’s economic growth is estimated to be at 7%. It is notable that this is the highest among all the major economies. This is in spite of the massive slowdown globally caused by Covid-19 and a war. The Indian economy is therefore on the right track, and despite a time of challenges, (is) heading towards a bright future.”
In a series of stories, IndiaRetailing brings you the opinion of leading industry experts on the Union Budget 2023. In the third feature of the series, we feature reactions to announcements in relation to ‘MSME’ which will have a bearing on retail businesses linked to MSMEs.
Dinesh Pratap Singh, co-founder, WoodenStreet
“The new scheme announced by the Finance Minister falling under PM Vishwakarma Kaushal Samman for artisans and craftsman will enable them to improve the quality, scale and reach of their products, integrating them with the MSME value chain. This will further include financial support and also access to advanced skill training, knowledge of modern digital techniques, brand promotion, linkage with local and global markets, digital payments, and social security. It will greatly benefit the Scheduled Castes, Scheduled Tribes, OBCs, women and people belonging to the weaker sections.”
Ridhima Kansal, director, Rosemoore
“The union budget has announced a fresh corpus of Rs 9,000 crore for guaranteed credit support for the MSME sector. This is a very positive step towards supporting the MSME segment, which is one of the critical cogs in the overall economic growth of India. There are close to six crore micro, small, and medium enterprises in India and offering them support is not just conducive for the sector but will also foster growth in the overall economy.”
Keshav Chadha, director and CFO, Milap Cosmetics
“As Finance Minister Nirmala Sitaraman quoted, “MSMEs are the growth engines of our economy.” as they play a key role in the country’s economy and contribute 27 percent of its GDP.
According to previous information from the Ministry of Micro, Small, and Medium Enterprises, as of November 25, 2022, the number of microenterprises registered stood at 11,735,117 (96.17%), with small businesses coming in second at 426,864 (3.49%) and midsized businesses coming in third at 39,467 (0.32%). It is very encouraging to see such impressive growth in the MSMEs, and it shows how much of an impact this sector has had on our economy.”
“Hence, the Union budget for 2023 is to allocate more resources to bolstering the competitiveness and independence of micro, small, and medium-sized enterprises, especially this beauty & cosmetic MSME. This will benefit the industry by providing access to credit, training, better technology, and other resources that can help it become more efficient and competitive. Furthermore, the circumspect reduction in customs fees and the facilitation of indirect taxation will encourage MSME exports. As an outcome, this will eventually boost domestic manufacturing and enhance domestic valuation.”
Pankaj Jathar, VP & country head India, Etsy
“At Etsy, we are focussed on helping small sellers and artisans to sell to global audiences, and we appreciate the Union Budget’s focus on supporting this sector.
There is growing appreciation for unique Indian items and the financial and digital support extended to them will go a long way in uplifting this sector. This will help in retaining and growing the country’s centuries old indigenous art and craft forms. This will create market linkages for artisans both internationally as well as for domestic buyers, and will act as a driving force for artisans and small sellers in the true spirit of becoming Aatmanirbhar.”
Tarun Joshi, CEO & founder, Join Ventures and IGP.com
“We are thrilled to see the government’s recognition of India’s valued artisans and craftspeople, which will not only improve the quality, scale, and reach of their products but also integrate them with the MSME value chain. This is a proud moment for all of us who have been working towards preserving and promoting the timeless beauty of traditional Indian crafts.”
