Industry leaders have praised the 2024 Union Budget for its emphasis on helping India’s small and medium-sized firms (SMEs), a vital employment sector that has recently faced difficulties. The administration was previously criticized for giving big businesses preference over SMEs. But in light of the BJP’s lackluster showing in the national elections, the most recent budget includes important initiatives to revitalize this industry.
Important projects include the creation of “plug and play” industrial parks close to 100 cities, an increase in Mudra loan ceilings from Rs 10 lakh to Rs 20 lakh, and a Rs 100 crore collateral-free credit guarantee scheme.
Credit Guarantee Scheme: An MSME can obtain a term loan with no collateral or third-party assurances through this self-financing option. The CEO of PMI Electro Mobility Solutions, Dr. Anchal Jain, commended the government for emphasizing that MSMEs may easily obtain term loans. This might help the 63 million MSMEs in India in a number of industries, including the production of electric vehicles and auto components.
Mudra Loans & Industrial Parks: According to Harshwardhan Sharma of the Nomura Research Institute, the improvement of Mudra loans is anticipated to support startups, especially in the EV industry. In addition, he emphasized the advantages of lower customs taxes on specific electronic parts and the creation of industrial parks, both of which will boost the production of automobiles.
Leaders in the industry, such as those from SKF India and Bharat Forge, have praised the government’s initiatives to assist the switch to sustainable energy, modernize cities, and bolster MSMEs. Significant job opportunities, especially for young people, are expected to result from the initiatives, which will also increase demand for EVs in general and for electric three-wheelers used in cargo applications in particular.
