Micro, Small, and Medium Enterprise (MSME) stakeholders have asked the government to execute the GST reductions, technology upgrades, and extend Production-Linked Incentive (PLI) advantages before distinct sectors in the pre-budget meeting with Finance Minister Nirmala Sitharaman. The motive of the interaction to collect the inputs for the Union Budget 2025-26 is scheduled for the presentation dated 1st February 2025.
MSME Representatives Recommendations
The MSME represents some recommendations which you can see below:
Technology and GST Reforms
It was outlined by the stakeholders that the requirement for addressing technology gaps and skill development, with calls for particular actions like linking the GeM (Government e-Marketplace) portal to Udyam registration to expand the market reach of MSME.
For a Technology Upgrade Fund similar to that for the textiles sector, the All India Plastics Manufacturers’ Association advocated. Also, a GST exemption for the recycling machines and a lowering in GST on raw materials have been requested by them.
The importance of Industry 4.0 technology adoption, GST exemptions, and strict adherence by banks to RBI revival guidelines for struggling units has been outlined by the Federation of Andhra Pradesh Small and Medium Industries Association.
Expansion in the PLI Scheme
Diverse representatives asked the government to comprise their sectors in the PLI scheme-
- Plastics sector: A PLI scheme to assist the increase of domestic production.
- Power electronics: PLI for products utilized in industrial and household applications to motivate domestic manufacturing and lessen import dependency.
India MSME Ecosystem Strengthening
It was reiterated by the participants that MSMEs are the backbone of the Indian economy. They asked for-
- Reviving and updating the MSMED Act.
- GST reductions to facilitate the financial load on small businesses.
- Improved focus on skill development and addressing infrastructure bottlenecks.
Industry Voices
It was said by the All India General Secretary of Laghu Udyog Bharati that optimism for the deliberations citing that if chosen the proposals can increase the growth of MSME.
Read Also: Understanding the Critical Role of MSMEs in India’s Economy
The National Convenor of All India Manufacturers’ Association emphasized the important role of PLI schemes in increasing the domestic manufacturers marking that power electronics products make a major component of industrial and household goods.
Environmental and operational improvements are been outlined by the All India Plastics Manufacturers’ Association pushing for a GST exemption on recycling machinery to stimulate sustainable practices.
Closure: The MSME’s demands and contribution to employment and Gross Domestic Product (GDP) show the pivotal role of the sector in driving India’s economic growth. The forthcoming budget can play a significant role in addressing such concerns fostering innovation and ensuring a level playing field for MSMEs in global and domestic markets.
