Budget 2024: FM Proposes New Mechanism to Support MSMEs with Continued Bank Credit during Stress Period [Read Bill]

The Union Finance Minister, Nirmala Sitharaman, presented the full Union Budget for 2024 today before the parliament at 11 am. It was the first budget of the Modi 3.0 government. It is vital to note that the FM has proposed a new mechanism to provide support during dress periods.

As there has been a significant increase in industrialization activities, the union budget has adopted measures to simplify the industries of manufacturing and services. The FM, with an intent to strengthen the Micro and small medium enterprises, ( MSMEs ), has announced a new mechanism for facilitating the continuation of bank credit to MSMEs during their periods. Another important factor is that the limit of Mudra loans has been increased from Rs. 10 lakhs to Rs. 20 lakhs. The scheme was launched in 2018 and provided loans up to 10 lakhs only. Thus facilitating the entities to improve their businesses as they are going to receive up to 20 lakhs.

A significant decrease has been made as the turnover threshold for buyers for mandatory onboarding on TrReDS platform has been reduced from 500 crore rupees to 250 crore rupees.

The union budget, with a special consideration, has announced financial support for 50 multi-product food irradiation units in the MSME sector.

Electronic Commerce export hubs are going to be set up in Public Private Partnership ( PPP )mode to enable MSMEs and traditional artisans and craftsmen to sell and promote their products in the international market during the dress period. This step aims to enhance and improve the import of these products worldwide.

Thus, by providing the MSMEs with various benefits, such as the limit of Mudra loans has been increased from Rs. 10 lakhs to Rs. 20 lakhs, and providing support during stressful periods, the Union budget aims to strengthen the MSMEs and providing a boost to their overall development.

To Read the full text of the Bill CLICK HERE

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