As the newly elected NDA government led by Prime Minister Narendra Modi is set to announce the allocation of ministries, a number of policy changes are reportedly expected by the new Modi cabinet to boost job creation, entrepreneurship and business growth.
At least nine such changes are expected, a few of which may come up in the upcoming budget in July. According to a report by CNBC-TV18 citing sources, the expected changes are providing higher indemnity to banks for loans to MSMEs, backward linkages for MSMEs to production-linked incentive (PLI) schemes, and setting up new an institute to enable more credit to small businesses and enhance exports
Further, revamping the government’s Atal Innovation Mission for increased focus on entrepreneurship and generation of jobs, additional allocation for aspirational districts programme in the upcoming budget, and more could be the likely changes ahead by the new government.
Industry experts have also called for support to MSMEs for more job creation and exports. Vijay Kalantri, Chairman, MVIRDC World Trade Center, Mumbai told IANS on Monday that MSME requires a lot of thrust from Prime Minister Narendra Modi, but the simplification of rules and expanding PLI will enhance the productivity of industry and trade.
“The capacity building is the need of the hour to enable us to export more and employ more people,” said Kalantri.
Among the key changes expected also include the revised 45-day payment rule for MSMEs to address their delayed payment related challenges, as hinted by Nirmala Sitharaman last month.
In an interaction with MSMEs and local industries in Ludhiana, Sitharaman had said that the government will repeal the changes, in the full budget, made to Section 43B of the Income Tax Act if MSMEs want to continue operating with uncertainty on payment timelines from their buyers.
Last week, traders’ body Federation of All India Vyapar Mandal (FAIVM) President Jayendra Tanna told FE Aspire that the body will urge the new NDA government to extend the time period for payment to MSMEs from their buyers to up to 180 days from the current 45 days.
