Arun Kumar Nayyar, MD and CEO of NeoGrowth.
Credit: NeoGrowth
Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
The MSME sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping its fingers crossed regarding their expectations from the government's most important financial document of the year.
"The contribution of MSMEs is vital in shaping the Indian economy. With the Union Budget 2025 on the horizon, we look forward to policies that will address key challenges, such as improving access to capital, simplifying business operations, and encouraging the adoption of new technologies for MSMEs.
Tax incentives for businesses investing in technology upgrades and expanding access to capital for underserved and unserved enterprises will play a pivotal role in strengthening the MSME ecosystem.
Enhanced allocations for digital public infrastructure and innovation to improve credit accessibility are also crucial to enabling sustainable growth.
The MSME sector, comprising over 50 million businesses, contributes nearly one-third of India’s annual gross value added (GVA) and employs over 216 million individuals.
Insights from the NeoInsights report, 'Unlocking Generational Preferences among Indian Retailers', reveal that 77% of MSMEs are actively planning to expand their operations.
To support this ambition, strengthening initiatives under Skill India can empower the workforce with the expertise needed to adapt to a rapidly evolving business landscape, enabling MSMEs to overcome challenges and realize their growth potential, ultimately driving significant economic progress," said Arun Kumar Nayyar, MD and CEO of NeoGrowth
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.