The budget for fiscal year 2024-2025 looks promising and is poised to advance India’s growth journey. The new credit assessment framework will increase credit eligibility for MSMEs, particularly those without formal accounting systems, by moving beyond traditional asset- or turnover-based assessments. The Mudra loan limit increase to ₹20 lakh will further address financing challenges in the sector. Traditional artisans are vital to India’s economy and have immense potential to boost exports and promote soft power globally. The establishment of e-commerce export hubs through Private-Public-Partnerships will enable artisans to access international markets, aligning with the growing trend of online retail. The promotion of digital public infrastructure and e-commerce export hubs will open new avenues for Indian retailers to tap into global markets. To enhance employability, vocational training and industry-relevant skills are crucial. The initiative to update 1,000 industrial training institutes in a hub-and-spoke model will drive progress, boosting employment in Tier 2 and Tier 3 cities. Currently, India’s skilled workforce is concentrated in metropolitan cities, this restructuring will create a more distributed workforce, leveraging unique geographical and demographic strengths. Furthermore, an economy’s progress is directly tied to disposable income; the government’s tax reforms promise to increase spending power, especially for the middle class.
Budget Reaction from Arjun Ranga, Managing Director, Cycle Pure Agarbathi
