Micro, Small & Medium Enterprises (MSMEs) and Small & Medium Enterprises (SMEs) are the most significant contributing sectors for the Indian economy. Despite this, MSMEs and SMEs are facing a number of challenges that are restricting their growth.
The year 2019 seems hopeful for MSME’s and SME’s since the government has already started providing them with various reliefs. The MSMEs sector has already received a GST relief in the recent GST council meeting, ahead of the Budget 2019. Here is a list of what the MSMEs and SMEs are expecting from the incumbent government:
Easy availability of loans: The small businesses are looking forward to the Union Budget 2019 for easy access to loans, grow their operations and contribute more to the economic health of the country.
Enhancement of Digital lending sector: It is expected that the government can consider friendly reforms and allocate money to the digital lending sector in the forthcoming budget. With the expected government’s initiatives, digital lending can make small businesses financially sufficient with easier access to loans
Tax sops for the small businesses: MSMEs bodies like TANSTIA and MIWA have proposed various incentives from the budget 2019 including tax reforms. It is expected that the government will present some tax sops, like mitigation of compliance burden, easing of working capital blockages and reduced tax rates, in the upcoming Union Budget.
Tax holiday: SME’s are hopeful of getting more lenient tax breaks in the upcoming budget. It is very likely that if the government announces a tax break for the SMEs sector, it will be confined to a certain limit.
Union Budget 2019 is likely to be a turning point if the government announces the aforementioned reforms for the MSME and SME sector. These reforms would greatly help the MSMEs and SMEs to grow their businesses and in turn grow the countries economy.