As the Union Budget 2025 approaches, industry stalwarts are vocal about their expectations from the government. Key focus areas span strengthening Micro, Small, and Medium Enterprises (MSMEs), fostering innovation, and addressing persistent structural challenges in various sectors. Here’s a detailed analysis based on expert insights:
Strengthening MSMEs with Targeted Policies and Innovation
Mr. Anuj Kumbhat, Founder & CEO of WRMS, emphasizes the importance of empowering MSMEs through technology and financial mechanisms. He suggests, “Strategic initiatives to streamline tender procurement, facilitate easier access to bank guarantees, and expand MSME loan frameworks are crucial.” Digital-first solutions, paired with targeted policy support, can enable MSMEs to scale sustainably and integrate seamlessly into India’s economy. The emphasis on innovation and inclusive growth is expected to drive a resilient future.
Supporting Consumer Durables with Energy-Efficient Solutions
Mr. Pradeep Bakshi, MD & CEO of Voltas Ltd., highlights the burgeoning consumer durables market, projected to become the fourth largest globally by 2027. “To unlock this potential,” he notes, “support through subsidies and grants for MSMEs and smaller manufacturers is essential.” He underscores the need for policies encouraging skill development, digital integration, and green manufacturing. Incentives for energy-efficient and eco-friendly products can address climate concerns while meeting rising consumer demand. The industry’s growth trajectory aligns with India’s vision for a competitive, self-reliant economy.
Bridging Policy Gaps for SMEs
Anupam V Joshi, Founder & CEO of WAE Ltd., calls for reforms to support SMEs, the backbone of India’s industrial landscape. He states, “Expanding the CGTMSE scheme, developing SME-specific industrial zones, and ensuring timely payments are critical.” Joshi also advocates for stringent enforcement of payment mandates under the MSMED Act and systemic efficiency in GST processes to ensure liquidity within the SME value chain. Such reforms can drive economic stability and growth.
Expanding MSME Access to Finance
Sundeep Mohindru, Promoter and Director of M1xchange, stresses the importance of addressing credit gaps for MSMEs. “The budget should expand collateral-free credit financing and reduce borrowing costs,” he advises. Key enablers include policy support for trade credit insurance, integration of TReDS with the GST portal, and faster integration with the GEM portal to boost working capital access. These measures will enhance financial inclusion and foster growth.
Promoting Digital Transformation for MSMEs
Gurjodhpal Singh, CEO of Tide India, highlights the transformative potential of digitization for MSMEs. “Allocating resources for digital tools in accounting, invoicing, and payment management can improve operational efficiency,” he explains. Singh also emphasizes tax reforms to reduce compliance burdens and skilling initiatives to enhance digital and financial literacy. These steps can empower MSMEs to thrive in a global market.
Enhancing Export Liquidity
Munindra Verma, CEO of M1NXT, calls for targeted solutions to address liquidity challenges faced by exporters. He points out, “Export credit has declined, necessitating enhanced interest equalization schemes and simplified financing platforms.” Policies promoting digital public infrastructure and supporting trade credit insurance can strengthen India’s global competitiveness and boost export growth from $776 billion to $2 trillion by 2030.
Conclusion: A Vision for Growth and Inclusivity
The Union Budget 2025 presents an opportunity to address critical challenges and drive sustained growth across sectors. With a strong emphasis on MSMEs, consumer durables, and exports, the budget is poised to set the stage for a competitive, self-reliant economy. By fostering innovation, ensuring liquidity, and promoting sustainability, the government can create a robust framework for India’s economic recovery and long-term resilience.