The government is targeting MSMEs providing them with more support with every new budget. The Finance Minister says The budget is not only read, but enacted upon. The government is actively working on all the projects and initiatives from the budget 2024. It shows the dedication of the government to make India a developed country by 2047. Under the initiative, the government increased the MSME lending target by 10% to Rs. 27.5 Lakh crores. The official announcement made on 18 September is another relief and support for the suffering MSMEs. DFS Secretary himself says that they are working actively to extend the credit accessibility for MSMEs.
The Government Shows Positive Signs For Increasing Support To MSMEs
The government has already taken a lot of initiatives in the past few years in favour of MSMEs. From the 45-day payment rule to credit accessibility, the government is considering a lot of new policies and schemes for its further support. It recently announced an increase in the lending target for FY25. The DFS secretary mentioned the ongoing work for MSMEs during the launch of the NPS Vatsalya scheme. It is a scheme for children where they can open an NPS account. It is for the people below 18 years of age.
This scheme is also helpful for parents who are looking to secure their children’s future. The parents enrolling under this scheme can allow the minor to set up pension accounts for the children. The Pension Fund Regulatory and Development Authority manages the scheme and will provide a Permanent Retirement Account Number (PRAN) to minors. A lot of political representatives were present during the launch and shared their views regarding the MSME’s growth. Finance Minister Nirmala Sithraman also gave her views regarding the budget schemes and its implementation.
She said, “Fulfilling what is said in budget within a few months, shows that budget speeches are not read but enacted upon”. The DFS Secretary already showed excitement about the upcoming measure by the government for the credit facilities. He shares about the upcoming meeting of the DFS with people from Debt Recovery Tribunals. Under this meeting on 21 September 2024, there will be more focus on the amount stuck in tribunals and its current progress. The MSME’s support is not only a central matter. It is also a state matter. Thus, there is a need for equal support from the state government as well for the MSME’s actual growth. There are states like Gujarat with immense state-level support for MSMEs. While MSMEs in states like Tamil Nadu still suffer.