April 19, 2024
Union Budget 2024: Empowering MSMEs, Fintech Innovation and Women Entrepreneurs for Inclusive Growth

By Pooja Sharma


  • banktech
  • credit access
  • fib

On 1 February, Finance Minister Nirmala Sitharaman presented the Interim Budget 2024. This important financial announcement provides a snapshot of the government’s economic priorities and sets the stage for the upcoming fiscal plans, outlining key initiatives and allocations.

The Union Budget 2024 continues to underline its commitment towards the tech sector, with an emphasis on inclusive growth across sectors including finance to promote economic empowerment across all industries.

“We appreciate the government’s intention to call for ‘timely and adequate finance, relevant technologies and appropriate training’ for MSMEs as a ‘key policy priority’. This will focus financial institutions on priority sector lending This will drive adoption of technologies that promote credit delivery to MSMEs. We expect stronger policy support to formalize more MSMEs in the coming months, resulting in further increase in GST filings and enterprise registrations. , which will help small businesses gain access to formal channels of credit. – Raja Debnath, Managing Director, Vfin Solutions Limited, A supply chain finance platform that empowers financial institutions to provide working capital to MSMEs.

Additionally, the government has announced its intention to establish a regulatory framework and enhance the scale, capacity and expertise of the financial sector, the latter of which will result in a more robust, resilient and thriving financial ecosystem in India, Debnath said. Will be ready. This will also increase global demand for financial innovation from India. The Finance Minister mentioned that the India-Middle East-Europe Economic Corridor is a strategic and economic game changer for India. “I believe financial services will be an important element of this approach.”

On youth aspirations, entrepreneurship and financial services, “The Budget’s focus on ‘youth and entrepreneurs’ will help realize the government’s vision of a developed India by 2047, as they are the key drivers of growth. As one of India’s leading digital lending companies, Fibe’s vision of empowering and skilling youth to fulfill their aspirations aligns well with the initiatives set out in the Union Budget 2024. We welcome the announcement of creating a fund of Rs 1 lakh crore with five. -Providing one-year interest-free loans and long-term financing and refinancing at low or zero interest rates. Said, Akshay Mehrotra, Co-Founder and CEO, Fibe, A consumer lending app for young, aspirational and tech-savvy Indians.

This step will not only harness the potential of this vibrant, tech-savvy generation but will also boost innovation and contribute to technological progress and economic progress. We applaud the success of the ‘Skill India Mission’ which has trained 1.4 crore youth and trained 54 lakh youth.

The manufacturing ecosystem has received an overall boost, with outlays for infrastructure at 3.4% of GDP. This will have a cascading impact on the entire value chain of manufacturing, a large part of which is led by MSMEs. Additionally, the Interim Budget 2024 gives priority to timely finance, technological advancement and skill development for MSMEs. With solid support from the government, we are optimistic that a large-scale campaign will be launched to formalize the MSME ecosystem and thus give them access to formal credit channels to grow their businesses.

“Furthermore, with the positive acceptance within the industry regarding the benefits of GST and collections rising to ₹1.72 lakh crore in January 2024, we are certain that GST-based analytics for credit decision making will gain widespread traction in India in the coming months.” Will be adopted on scale. The Finance Minister also acknowledged the role of GIFT IFSC in creating a strong gateway for financial services for the economy. This is a big incentive for the ongoing projects in GIFT IFSC. We hope that some new financial innovations like TReDS will be implemented for exporters in 2024-25. Sudeep Mohindru, Promoter and Managing Director, M1Xchange, A TReDS platform in India that facilitates working capital solutions for MSMEs through analytics-based invoice discounting.

“We appreciate the government’s continued support towards making women part of the formal economy in all sectors from agriculture to entrepreneurship. Recognizing this important contribution, today’s Budget clearly reflects the Government of India’s focus towards empowering women for the economic growth of the country. The Mudra Yojana scheme has been a game-changer in providing loans to 30 crore women to encourage them to start their own businesses. It will bridge the digital divide and help equip women entrepreneurs with the tools they need to compete in the modern marketplace. , Gurjodhpal Singh, CEO of Tide India, A commercial financial platform for MSMEs.

Empowerment of women through entrepreneurship, ease of living and respect for them has gained momentum in the last few years. Continued government support for women will help them take center stage in the country’s sustainable development. To transform the rural socio-economic scenario with empowerment and self-reliance, the Government of India will increase the ‘Lakhpati Didi’ target from 2 crore to 3 crore.

Pal said, “We believe that Indian fintech will help women-led MSMEs access formal credit lines while saving time and money through digitization and their huge potential to drive India’s economic growth. Will unlock it.”

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Source: ibsintelligence.com

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