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MSMEs get Rs 15,700 crore in Union Budget 2021

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A provision of Rs 15,700 crore for the Ministry of Micro, Small and Medium Enterprises (MSME) sector in the Union Budget 2021-22 by Finance Minister Nirmala Sitharaman.

“We have taken a number of steps to support the MSME sector in this budget. I have provided Rs 15,700 crore more than double the previous year,” said Sitharaman while presenting the Union Budget in the Parliament.

“Financial Inclusion: To further facilitate credit flow under the scheme of Stand Up India for the Scheduled Caste and Scheduled Tribes and also women, I propose to reduce the margin money requirement from 25 per cent 15 per cent only and to also include loans for activities in allied activities in agriculture,” the Finance Minister added.

While presenting the Budget, Sitharaman said, only three times has the Budget followed a contraction in the economy this time, unlike before, the situation is due to a global pandemic Budget-2021 provides every opportunity for the economy to capture the pace and grow sustainably.

“The preparation of this Budget was undertaken in circumstances like never before, in view of calamities that have affected a country or a region within a country. But what we have endured with COVID-19 to 2020 is Sui generis,” she added.

According to Raghunandan Saraf, Founder & CEO, Saraf Furniture, by announcing that the Government will introduce a bill for the development of financial institution, Nirmala Sithraman has shown a clear path for the growth on financial infrastructure in the Atmanirbhar Bharat.

“The Hon’ble Union Finance Minister Nirmala Sithraman’s announcement of a sharp increase in Capital Expenditure and thus providing Rs 5.54 lakh crores will develop momentum for financial infrastructure domain. Further, the announcement of the development of investor charter should also be welcome as it will protect the hard-earned money of a number of investors,” he stated.

“The union budget 2021 has quite several steps to support the MSME sector. Measures announced for financial Inclusion and reduction of the margin money requirement from 25% to 15% will boost their growth. The budget aims to benefit many of our customer segments and will benefit us as well. Recent announcement of the Startup Seed Fund has already boosted the morale of the startup ecosystem and we are really hopeful for the coming year,” added Sharad Bhatt, CFO,
“The investment in MSMEs and the moratorium on loans of up to 2Cr will also play a crucial role in for the Indian corporates. Privatization of several government-related sectors such as ports will also add to the economic growth and employment generation,” said Lokendra Ranawat, Founder & CEO, WoodenStreet.
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