Union Budget 2021 Expectations for MSMEs: Budget 2021 should make efforts to enable the development of MSMEs by providing them access to the required credit and adopting the latest technologies.
Union Budget 2021-22 Expectations for MSMEs: India has close to 6.8 million Udyog Aadhar registered MSMEs and another 63 million MSMEs. As per an estimate, currently, there are close to 30 unicorn Indian startups, and 18 out of the 30 unicorns have significant foreign direct investments. These bold statistics constituting almost 45 per cent of the manufacturing output, 95 per cent of the number of industrial units, 40 per cent of exports, and employing nearly 110 million people make MSMEs the largest source of employment after the agriculture sector. MSMEs lead to entrepreneurial development and the diversification of the industrial sector. They also provide depth to the industrial base of the economy. Employment opportunities are generated, and the capital cost per employee is low. With the services sector dominating the MSME and with MNCs outsourcing their requirements to Indian service providers, MSME finance’s scope has increased.
Alok Bansal is Managing Director of Visionet Systems Inc. and has 21 years of experience in managing strategy and global BPO operations. He excels in optimizing and leading the growth of financial services companies who are looking to take their mortgage operations to the next level.