Budget 2024: MSMEs call for Rs 5,000 crore-fund, export promotion

The India SME Forum has urged the government to allocate a dedicated fund of Rs 5,000 crore for the development, promotion, and global marketing of Micro, Small & Medium Enterprises (MSMEs) in the upcoming Budget, has reported.

With more than 98,000 members, the forum said to enhance India's competitiveness and exports, it was vital to increase the number of active exporters and enable at least 3-4 lakh first-time micro, small, and medium exporters in promoting Indian products globally.

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The forum proposed establishing an export promotion and development organisation to provide MSMEs with market intelligence, trade opportunities, and business-to-business (B2B) connections, the report said.

Drawing parallels with global counterparts such as the US Commercial Service and Japan's JETRO, the SME forum laid emphasis on promoting Indian products internationally, the report said.

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The forum president Vinod Kumar called for  a comprehensive export familiarisation programme to enable first-time MSME exporters to participate in B2B exhibitions in markets such as China, Taiwan, Vietnam and South Korea.

The PHD Chamber of Commerce and Industry recommended concessions for public sector undertakings (PSUs) and large companies joining the Trade Receivables Discounting System (TReDS). The system, launched by the Reserve Bank of India in 2014, facilitates the discounting of MSME invoices and bills, enhancing liquidity by converting them into factoring units accepted by corporate buyers.

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ASSOCHAM president Sanjay Nayar highlighted the need for specialised MSME universities offering courses in technology adoption, financial management, quality control, market strategy, and international compliance.

Nayar advocated bringing all enterprises under the Goods and Services Tax (GST) regime to improve creditworthiness and access to finance by creating a digital footprint of financial transactions.

To boost geographical indication (GI) products, the SME industry bodies called for a Rs 500-crore fund. India has 643 GIs as of June.