{"id":1002,"date":"2023-02-14T12:12:13","date_gmt":"2023-02-14T12:12:13","guid":{"rendered":"https:\/\/qpe.co.in\/blog\/?p=1002"},"modified":"2023-09-27T22:17:51","modified_gmt":"2023-09-27T16:47:51","slug":"union-budget-2023-2024","status":"publish","type":"post","link":"https:\/\/www.goqpe.com\/blog\/union-budget-2023-2024\/","title":{"rendered":"Union budget 2023-2024: Benefits for small businesses"},"content":{"rendered":"

Everything You need to know about Union Budget 2023-24<\/strong><\/h2>\n

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Union Finance Minister Nirmala Sitharaman<\/strong> presented the fifth budget of the Modi 2.0 period. This is Amrit Kaal’s first budget to be presented. The Union budget 2023<\/strong> attempts to build on the advancement of the Indian economy, which rose from being the tenth to the fifth largest in the world.<\/span><\/p>\n

The focus of the current fiscal year’s Union Budget<\/strong> is on inclusive development, which includes promoting public-private partnerships, skilling (teaching-upskilling), and launching medium- to long-term national development initiatives. This fiscal year’s Union Budget also supports SMEs<\/a> or small businesses’ access to capital and ease of doing business.<\/span><\/p>\n

India overtook the UK to become the fifth-largest economy in the world in 2022, and it is now on track to meet PM Narendra Modi’s target of a $5 trillion GDP by 2026\u20132027<\/strong>. Despite concerns about an upcoming global recession, supply disruptions, and the conflict between Russia and Ukraine, India has emerged as a bright spot, expanding more fast than most other key emerging countries.<\/span><\/p>\n

This spirit of resiliency has been proven by the 6.3 crore for micro, small, and medium-sized businesses<\/a>, which account for 30% of the GDP and employ approximately 11 crore people. The MSME sector’s sales in a number of industries have risen to 90% of their pre-pandemic levels, and India’s small firms are directing a turnaround.<\/span><\/p>\n

Government initiatives including expanding the Emergency Credit Line Guarantee Scheme, revamping the Credit Guarantee Trust for Micro and Small Enterprises, and launching the Pradhan Mantri Employment Generation Programme to promote self-employment are largely to thank for this recovery.<\/span><\/p>\n

However, given the MSMEs’ mostly disorganized nature, rising interest rates, and a weakening external environment, it is critical to continuously address their pain problems.<\/span><\/p>\n

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Union Budget 2023-2024: A Great Support for all SMEs and MSMEs<\/b><\/h3>\n

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The budget has set aside 9,000 crore for investment in the MSME sector, opening up 2 lakh crore to support collateral-free loans. This occurs as nations around the world get ready to fight an upcoming recession. The cost of credit will also decrease by 1% as a result of this.<\/span><\/p>\n

The Vivad Se Vishwas<\/strong> programme was deemed ineffective by FM Nirmala Sitharaman for MSMEs. In cases of failure to fulfil contracts, MSMEs will get 95% of the performance security from the government under this programme.<\/span><\/p>\n

Providing MSMEs with timely payments is a significant next step. Only when the debt has been repaid may payments made to MSMEs be deducted.<\/span><\/p>\n

Additionally, only 10% of our MSMEs are now online, so rapid adoption of these new standards is essential to maximizing their potential. In anticipation of the advantages of ecommerce<\/a> and digitization, such as a significantly larger target market, better efficiencies, and simpler access to funding, millions of small businesses are waiting in the wings.<\/span><\/p>\n

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Run, Manage & Grow Online business with QPe<\/p><\/div>\n

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By utilizing the National Logistics Policy, our MSMEs may become competitive. The National Logistics Plan (NLP) seeks to bring logistics costs as a percentage of GDP down from 13\u201314% to 8%, where they would be competitive with developed nations. Price reductions will encourage more MSMEs to use tech-enhanced logistics services, but they will require support to fulfil the rising e-commerce demand from smaller towns and semi-rural areas.<\/span><\/p>\n

To do this, the government might work with India Post, a last-mile delivery partner with cutting-edge technology who can enable cash-on-delivery transactions at affordable rates. Similar to this, by utilizing Indian Railways’ unequalled reach, it is able to carry goods quickly and economically to the remote areas of the country.<\/span><\/p>\n

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8 Important points from the Union Budget 2023 for MSMEs<\/b><\/h2>\n

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