Post-budget 2018 Reaction Mr. Ankit Agarwal, MD at Alankit

Union budget 2018-19 has been positive and common man centric. Various government schemes in the past year have delivered on the Government’s promise of ‘Less Government and More Governance’ and the budget announcements have not been any different. The Economic Survey 2017-18 highlighted that out of a total outstanding credit of Rs 26,041 billion as in November 2017, 82.6% of the amount was lent to large enterprises and MSMEs got only 17.4 % of total credit and this situation needs attention. Terming MSMEs as the major engine of growth for the Indian economy, the finance minister allocated a sum of Rs. 3794 crore for credit support, capital & interest subsidy on innovation which would improve credit flow in this segment and solidify its position within the economy. Policies like demonetisation and GST have already initiated the process of formalisation of the MSMe sector, which helps in collection of financial information database thereby improving financing for the sector. Reduction of paper work, smoother loan sanctioning cycle and prompt decision making by banks would encourage more and more businesses to walk the straight path of transparency and governance . Additionally, rewarding good behaviour has been a consistent strategy of the current Government and unfailingly they set examples of the same. Reduction of the corporate tax rate for companies with an annual turnover of up to Rs 250 crore to 25% is a move which positively impacts the small, medium and micro enterprise segment. 

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