{"id":7328,"date":"2024-02-03T14:56:42","date_gmt":"2024-02-03T14:56:42","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=7328"},"modified":"2024-07-24T07:16:05","modified_gmt":"2024-07-24T07:16:05","slug":"key-highlights-for-msmes-in-budget-2024","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/","title":{"rendered":"What Are The Key Highlights for MSMEs in Budget 2024?"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Budget-2024-500x281.png\" alt=\"\" class=\"wp-image-7331\" width=\"840\" height=\"472\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Budget-2024-500x281.png 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Budget-2024-768x432.png 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Budget-2024-1536x864.png 1536w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Budget-2024-2048x1152.png 2048w\" sizes=\"(max-width: 840px) 100vw, 840px\" \/><\/figure><\/div>\n\n\n<p>Union Finance Minister Nirmala Sitharaman released the interim budget of the Modi 2.0 administration on 1st February 2024. The ruling Bharatiya Janata Party (BJP) of Prime Minister Narendra Modi is reportedly utilizing the interim budget for 2024\u20132025 as their economic platform ahead of the 2024 Lok Sabha election.<\/p>\n\n\n\n<p>An essential component of India&#8217;s economic growth toward a $5 trillion GDP is the MSME sector. In her speech presenting the interim <strong>budget 2024<\/strong> to the Parliament, Finance Minister Nirmala Sitharaman emphasized the significance of having sufficient funding. <\/p>\n\n\n\n<p>Sitharaman said that the government wants to ensure timely and <a href=\"https:\/\/www.indifi.com\/blog\/business-needs-finance\/\">adequate finances<\/a>, relevant technologies, and appropriate training for the micro, small, and medium enterprises (MSME)&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/#Key_Highlights_for_MSMEs_in_Budget_2024\" title=\"Key Highlights for MSMEs in Budget 2024\">Key Highlights for MSMEs in Budget 2024<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/#Timely_Funding\" title=\"Timely Funding\">Timely Funding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/#Emergency_Credit_Line_Guarantee_Scheme\" title=\"Emergency Credit Line Guarantee Scheme \">Emergency Credit Line Guarantee Scheme <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/#On-time_Payments_Budget_2024_highlights\" title=\"On-time Payments: Budget 2024 highlights\">On-time Payments: Budget 2024 highlights<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/#Key_Highlights_of_Union_Budget_2024_By_Nirmala_Sitharaman\" title=\"Key Highlights of Union Budget 2024 By Nirmala Sitharaman\">Key Highlights of Union Budget 2024 By Nirmala Sitharaman<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/#Takeaways_For_MSMEs_From_Interim_Budget_2024\" title=\"Takeaways For MSMEs From Interim Budget 2024\">Takeaways For MSMEs From Interim Budget 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/key-highlights-for-msmes-in-budget-2024\/#FAQ\" title=\"FAQ\">FAQ<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Highlights_for_MSMEs_in_Budget_2024\"><\/span><strong>Key Highlights for MSMEs in Budget 2024<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nirmala Sitharaman focused on the Micro, Small, and Medium Enterprises (MSME) sector, which makes up about 30% of India&#8217;s GDP, in her interim <strong>MSME Budget 2024<\/strong> statement. <\/p>\n\n\n\n<p>She emphasized the government&#8217;s focus on MSMEs under the banner of &#8216;Viksit Bharat&#8217; by 2047 while expressing her displeasure with the interim Union MSME <strong>Budget 2024<\/strong> at the new Parliament building. This includes plans to boost trade and the economy, self-sufficiency strategies, and training for MSMEs.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Timely_Funding\"><\/span>Timely Funding<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The government would supply timely and essential funding, appropriate technologies, and appropriate training. <\/p>\n\n\n\n<p>The economic survey claims that the government&#8217;s reforms for the MSME sector\u2014which employs more than 11 crore people\u2014have aided smaller companies in growing even further and recovering from the pandemic&#8217;s effects.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Emergency_Credit_Line_Guarantee_Scheme\"><\/span>Emergency Credit Line Guarantee Scheme <span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The <strong>Emergency Credit Line Guarantee Scheme (ECLGS),<\/strong> the addition of retail and <a href=\"https:\/\/www.indifi.com\/blog\/10-best-wholesale-businesses-in-india-2020-21\/\">wholesale trades as MSMEs<\/a>, the updating of MSMEs&#8217; definitions under <em>Aatmanirbhar Bharat,<\/em> the implementation of <a href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/\">TReDS<\/a> to address MSMEs&#8217; late payments, and the extension of non-tax benefits for three years in the event of an upward change in MSME status are a few of these.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"On-time_Payments_Budget_2024_highlights\"><\/span>On-time Payments: Budget 2024 highlights<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Including this survey, went on to say that by allowing a tax deduction for expenditures incurred on payments made to MSMEs only when the payment is received, the <em>Union Budget for FY24<\/em> made it simpler for them to receive payments on time. <\/p>\n\n\n\n<p>Information on MSMEs has been aggregated owing to the <a href=\"https:\/\/www.indifi.com\/blog\/udyam-registration-online-for-msmes\/\">Udyam portal<\/a> and the Udyam Assist Platform (UAP), with <a href=\"https:\/\/www.thehindu.com\/business\/budget\/interim-budget-2024-thrust-for-pm-vishwakarma-scheme-cluster-projects-for-msmes\/article67800141.ece\" rel=\"nofollow\">2.24 crore MSMEs<\/a> registered on the Udyam portal and about 1.2 crore units registered on the UAP.&nbsp;<\/p>\n\n\n\n<p>The government has established the <strong>Emergency Finance-Linked Guarantee Scheme (ECLGS)<\/strong> to give large sums of finance to MSMEs. According to Sunil Desai, managing director of Richfield Engineering India Private Ltd and an analyst on MSME panels at various events, there are more pressing issues for MSMEs that must be addressed, but the government is not prioritizing them. There are many <a href=\"https:\/\/www.indifi.com\/blog\/5-new-govt-msme-schemes-to-grow-msmes-sector\/\">Govt schemes for MSMEs<\/a><\/p>\n\n\n\n<p>MSMEs are penalized for late payments as soon as they miss a loan installment.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/msme-loans\"><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg\" alt=\"\" class=\"wp-image-5348\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1.jpg 716w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/figure><\/div>\n\n\n<p>The issue is whether you want to close the MSME or enter the market and have the industry help them grow. He goes on to say that the budget and industry rule designers are unrelated to the growth of MSME&#8217;s.<\/p>\n\n\n\n<p>According to Nilaya Varma, co-founder of Primus Partners, acknowledging the importance of MSME, competing globally in the green economy, and having a policy environment that takes MSME needs into account are all critical. <\/p>\n\n\n\n<p>Varma said that without making its MSMEs competitive, India cannot compete globally and create the jobs it needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Highlights_of_Union_Budget_2024_By_Nirmala_Sitharaman\"><\/span>Key Highlights of Union Budget 2024 By Nirmala Sitharaman<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are latest highlights of Union Budget 2024 given by Finance Minister:-<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"151\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/12\/Latest-Union-Budget-500x151.png\" alt=\"Latest Union Budget\" class=\"wp-image-11543\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/12\/Latest-Union-Budget-500x151.png 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/12\/Latest-Union-Budget-768x231.png 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/12\/Latest-Union-Budget-1536x462.png 1536w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/12\/Latest-Union-Budget.png 1920w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/figure><\/div>\n\n\n<ul>\n<li><strong>For Ecommerce Businesses<\/strong>:- The tax deducted at source (TDS) for online shopping has been reduced from 1% to 0.1%.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul>\n<li><strong>Angel tax<\/strong> is no longer applicable to any investors.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul>\n<li><strong>The tax rate for foreign companies<\/strong> was lowered from 40% to 35%.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul>\n<li>The <a href=\"https:\/\/www.indifi.com\/blog\/mudra-loan\/\"><strong>eligibility limit for Mudra Loans<\/strong><\/a> has been increased. Now, people who have taken and successfully repaid loans under the TARUN category can get up to Rs 20 lakh instead of the previous limit of Rs 10 lakh.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul>\n<li>To help small and medium-sized businesses get cash by converting their invoices into money, the requirement for big companies to join the <a href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/\">TReDS platform<\/a> has been lowered. Now, companies with a turnover of Rs 250 crore or more must join, instead of the previous Rs 500 crore. This change will add 22 more central public sector enterprises and 7000 more companies to the platform.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul>\n<li>Funds will be provided to establish 50 facilities for treating food with radiation to make it safer and 100 labs for testing food quality and safety.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaways_For_MSMEs_From_Interim_Budget_2024\"><\/span><strong>Takeaways For MSMEs From Interim Budget 2024<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Sitharaman presented her sixth consecutive budget, focusing on achieving &#8216;<strong>One Nation, One Market,<\/strong> and <strong>One Tax&#8217;<\/strong> and the simplified business environment enabled by the Goods and Services Tax (GST). The interim budget 2024 allocated <strong>Rs 22,137.95 crores for MSMEs,<\/strong> including new clusters and technology hubs, for global competitiveness. Checkout how you can do <a href=\"https:\/\/www.indifi.com\/blog\/process-for-online-registration-for-gst\/\">GST registration<\/a>.<\/p>\n\n\n\n<p>The <strong>budget 2024<\/strong> is critical for MSMEs that produce components. The government can help these businesses function as catalysts for technological advancement, job creation, and economic growth by implementing targeted measures and addressing their primary concerns. <\/p>\n\n\n\n<p>Helping India&#8217;s MSMEs is not only economically necessary but also a calculated investment in the country&#8217;s future as it strives to establish itself as a global manufacturing hub.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQ\"><\/span>FAQ<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What is the budget for MSMEs in 2024?<\/strong><\/p>\n\n\n\n<p>The interim budget 2024 MSME highlights sets aside<strong><em> \u20b922,137.95 crores<\/em><\/strong> for small and medium businesses (MSMEs). This money will be used to create new business groups and technology centers to help these businesses compete worldwide.<\/p>\n\n\n\n<p><strong>What is 45-Day MSME Payment Rule?<\/strong><\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-45-day-msme-payment-rule\/\">MSME 45-day payment rule<\/a> says that businesses must pay their small and medium-sized suppliers within 45 days. If they don&#8217;t pay within 45 days, they can&#8217;t deduct those expenses from their taxes. This rule is part of Section 43B(h) of the Income Tax Act.<\/p>\n\n\n\n<p><strong>Which areas got a boost from the 2024 Budget?<\/strong><br>In the long run, main areas that are likely to benefit include infrastructure, renewable energy, aviation, railways, metros, power, and capital goods. These sectors are getting more government support through increased spending. Trading business is quite trending now days look some of the <a href=\"https:\/\/www.indifi.com\/blog\/trading-business-ideas\/\">best trading business ideas<\/a> that are performing well in 2024.<\/p>\n\n\n\n<p><strong>What is the budget for GST in 2024?<\/strong><\/p>\n\n\n\n<p>Interim Union Budget 2024: Goods and Services Tax (GST)<\/p>\n\n\n\n<p>Budget 2024 Highlights:<\/p>\n\n\n\n<ul>\n<li>The number of businesses and individuals paying GST has doubled.<\/li>\n\n\n\n<li>After GST was introduced (from 2017-18 to 2022-23), the revenue from State GST (SGST) increased significantly, showing better performance compared to the period before GST (2012-13 to 2015-16).<\/li>\n\n\n\n<li>94% of industry leaders think the move to GST was a good decision.<\/li>\n\n\n\n<li>GST has made supply chains more efficient.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Union Finance Minister Nirmala Sitharaman released the interim budget of the Modi 2.0 administration on 1st February 2024. The ruling Bharatiya Janata Party (BJP) of Prime Minister Narendra Modi is reportedly utilizing the interim budget for 2024\u20132025 as their economic platform ahead of the 2024 Lok Sabha election. An essential component of India&#8217;s economic growth [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/7328"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=7328"}],"version-history":[{"count":23,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/7328\/revisions"}],"predecessor-version":[{"id":11545,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/7328\/revisions\/11545"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=7328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=7328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=7328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}