MSME - #SectorUpdates
The pre-budget meetings with finance minister Nirmala Sitharaman has received multiple suggestions from representatives of various sectors including mechanism for green certification to help MSMEs, rationalisation of income tax, creation of innovation clusters, schemes for improving domestic supply chains, Social Sector Entrepreneurship Fund for Social Impact and more. According to a statement by the finance ministry, urban employment guarantee programme to boost employment generation in urban areas, reduction of taxes on electric vehicle, introduction of EV policy, and measures to promote India as a hub for green hydrogen, were other suggestions from various sectors. Among the prominent suggestions were scrapping the bank loan rating (BLR) requirement by banks to lend to MSMEs and instead develop a unique rating model focusing on solvency alone of the borrower, reserving manufacturing and marketing of traditional, conventional and low-technology products such as bread, bun, stationary items, etc. of mass consumption for MSMEs, treat retail loans to small businesses/individuals differently in comparison to large corporate loans, etc.