Informal sector waits in anticipation for Budget like never before

The unorganised and msme sector is looking forward to the Budget 2021, as Finance Minister is set to present the Bahi Khata styled budget through Made-in-India tab. She had sought the suggestion from industry experts in the consultation process which triggered hopes for the MSME sector.

The revival of the sector depends directly on the policies and measures to be announced in the budget. It will also buttress the investors confidence in the sector.

The Centre’s ‘Atmanirbhar Bharat’ initiative has resonated fairly with the local businesses so far. MSMEs and local businesses are poised to become a strong driving force for transforming smaller cities and making rural areas into production hubs.

Revenue losses, reverse migration of rural and semi-urban workforce, dried investments, difficulties in meeting compliances, left the sector exposed to many hardships. The policy support, directed towards developing the working capital, skilled workforce and relevant technology infrastructure is vital to enable the rural sector & MSMEs work with large companies in order global markets.

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Condition based reduction in import duties on parts and components and raw material for the MSME sector and raising import custom duties on finished goods to enable collaboration between large companies and MSME sector and time bound issuance of GST refunds are some measures suggested by the Experts.

As the budget is always framed against the backdrop of the macroeconomy. some expenses cannot be cut besides the pandemic has compelled to bring new expenses that cannot be avoided.