It is good to see that the policymakers have increased their focus on the MSME sector in the budget. MSME sector provides the highest employment from the non-agri sector in the country and this sector needs to be made robust.
While the extension of 25% tax rate to companies upto 250 Crore revenue will mainly help the medium and small organizations, the benefits will ultimately trickle down to the micro enterprises that lie at the bottom of the pyramid of businesses.
The Increase of allocation to Rs3 lakh crores to Mudra Bank and the Health protection scheme- ‘Áyushman Bharat’ hold considerable promise for the micro enterprises. I am hopeful that Mudra Bank will explore direct lending as well as refinance of lending to micro enterprises – to improve the effective deployment of the budget allocation. Medical shocks is a significant reason for stress in micro enterprises and the health cover under ‘Áyushman Bharat’scheme’ will do considerable good to the families of micro enterprise owners and their employees. Availability of credit and health cover for masses is a positive development for micro enterprises.