Leading SMEs of India 2023

58 | Leading SMEs of India 2023 [ INDIAN SME SECTOR OVERVIEW ] RECENT GOVERNMENT INITIATIVES TO PROMOTE MSME GROWTH MSMEs have emerged as a vibrant and dynamic sector of the Indian economy, encouraging entrepreneurial spirit, and providing low-cost employment opportunities. To boost the growth of MSMEs, the government has taken several initiatives Scheme Impact Raising and Accelerating MSME Performance (RAMP) Strengthening institutions and governance, improving centre-state linkages and partnerships, improving access of MSMEs to market, credit, technology upgradation and addressing issues of delayed payments and greening of MSMEs Capacity Building of First-Time MSME Exporters (CBFTE) Encourage MSMEs to offer products and services of international standards for the global market. This will also enhance the participation of Indian MSMEs in the global value chain and help them realise their true export potential Udyam Assist Platform Bring Informal Micro Enterprises (IMEs) under the formal ambit for availing benefits under priority sector lending. The IMEs are enterprises that are not registeredon theUdyamPortal. As a result, such enterprises are unable to avail the benefits of government schemes Besides these measures, foreign trade pol icy 2023 has set an ambitious target of scaling India’s exports to USD 2 trillion by 2030 • The policy aims at process re- engineering and automation to facilitate ease of doing business for exporters. It seeks to move away from an incentive-based regime to one focusing on technology inter face and principles of collaboration. • The policy aims at building pa r t ne r s h i p s w i t h s t a t e governmen t s and t ak i ng forward the Districts as Export Hubs initiative to promote exports at the district level and accelerate the development of grassroots trade ecosystems, which would help MSMEs operating in rural and semi- urban areas. • It also focuses on emerging areas l ike dual use high- end technology items under SCOMET (Special Chemicals, O r g a n i s m s , M a t e r i a l s , Equipment, and Technologies), f a c i l i t a t i ng e - comme r ce exports, collaborating with states, and districts for export promotion. Further, in the Union Budget 2023- 24, the government has laid strong emphasis on creating necessary infrastructure for MSMEs. The key budget proposals for MSMEs 1. Launch of a unified Skill India digital platform: Focus on digi tal learning, creat ing demand-based formal skilling, access to entrepreneurship schemes, link jobseekers with employers 2. Revamp of Credit Guarantee Scheme for MSMEs: Enable addi t iona l col l atera l - f ree guaranteed credit of INR 2 lakh crore toMSMEs and a reduction in the cost of the credit by about 1%. 3. Set up an entity DigiLocker for use by MSMEs , l arge businesses, and charitable trusts: To be utilized to store and share documents online wi th f inancial author i t ies , regulators, banks, and other business entities. 4. Ease of doing business: The turnover limits to be eligible for the presumptive taxation benefit have been enhanced. Henceforth, micro enterprises with a turnover up to INR 3 crore as against an earlier INR 2 crore will be eligible to be taxed presumptively provided their cash receipts are not more than 5% of total receipts. Dun & Bradstreet