“The Union Budget presented by the Finance Minister is quite balanced and aimed at boosting the economic development of the country. The overall measures announced will spur the revival of the economy and increase consumption. The proposed simplification in filing GST return and speeding up of GST refund process will positively impact the entire industry, especially the MSMEs. This budget has also proposed significant measures for the MSME that can help alleviate the financing problems by amendments to the Factory Regulation Act 2011 which will enable non banking financial companies (NBFCs) to extend invoice financing to the MSMEs. The Budget also raises the audit turnover threshold for MSMEs to Rs 5 crore intended at reducing the compliance burden on small retailers, traders, shopkeepers. At the same time, the government has also asked the Reserve Bank to extend debt restructuring window for MSME sector by a year to March 31, 2021. The range of measures introduced by the government for the MSME sector indicates the intent of the government to resurrect the MSMEs and create an enabling atmosphere for ease of doing business.”
Dinesh Agarwal, Managing Director, IndiaMART InterMESH Ltd.