Thanks to the government’s push on digital – led financial inclusion, loans of upto Rs 1 crore loan can be obtained under 59 minutes, said Piyush Goyal, Union Finance Minister, while presenting Interim Budget 2019.
Considering the critical role of MSMEs in the Indian economy, the government has undertaken a number of measures to enhance the capacity building of MSMEs, he added.
“GST registered MSME units to get 2% interest subvention on loan of Rs 1 crore. In government institutions, procurement from SME units have been hiked to 25%, out of which, material to the extent of, at least 3% is now to be sourced from women-owned businesses,” he said.
According to Atul Gupta, Partner, Deloitte India, GST compliant small scale registered businesses to be recognized for granting loan at concessional rate is likely to encourage compliance behavior among small scale business units.
Highlighting the role of government marketplace (GeM) in catalysing MSMEs’ growth, Goyal said, “GeM created by government two years ago has transformed the procurement process, making it fully transparent, inclusive and efficient. Thousands of MSMEs have now the opportunity to benefit to sell via the platform.”
On GeM, transactions of over 17,500 crore have already taken place resulting in average saving of 25-28% for MSMEs. The platform is now being extended to all public sector enterprises, the finance minister further added