MSMEs are slowly getting back to business. A little aid from the Government can help the backbone of the Indian economy straighten up faster. We explored some MSME expectations from the government for faster recovery from the COVID effects.
A study(financialexpress) shows that MSMEs have the potential to add $300 billion to the GDP by 2025. Experts believe that although the GDP has dropped by 8% now, it can be revived quickly if the government:
- Actively regulates demand generation market-access platforms
- Monitors export and import activities within and outside India.
- Works with the private sector to maximise SME reach and provide ease of digital access.
But what are MSME expectations from the Government?
- 1 3 things Indian MSMEs want from the Government:
- 2 mojoVersity – an online university for MSMEs, startups, and entrepreneurs
3 things Indian MSMEs want from the Government:
Defer/remove income tax and pending loans
As per the latest update by The Hindu, MSMEs expect the Government to significantly reduce or defer income tax filing to the next fiscal year. Small businesses earning less than ₹15 lakh revenue want income tax to be abolished completely.
Furthermore, MSME expectations include exemption from GST for businesses with less than ₹5 crore turnover, up to March 2021. This comes in effect after the Government asked states to accept GST compensations funds as loans, which left MSMEs in a fix.
Extend credit guarantee lending schemes with banks
Since the COVID pandemic made waves in India, the government issued emergency credit line schemes via banks all over the country.
However, Financial Express stated that the Government may not extend the ₹ 3 lakh crore emergency line credit scheme for MSMEs beyond October, although only 65% of the sanctioned amount has been distributed via banks. For the small business owner, this could come at a bad time during the festive season.
Why? MSMEs need to re-start logistics and capital expenditure. For this, they want the Government to help provide easy access to special fast track loans for capital equipment purchase at a 5% interest rate and 2-year moratorium.
Ease of compliance
On October 1st, the Government made it mandatory for business with a turnover of over ₹ 500 crores to generate e-invoices and maintain GST filing.
For a lot of small businesses, this may come as a sigh of relief, but the government still expects MSMEs to adhere to strict compliance rules and regulations, which many MSMEs are not familiar with.
The Government is working on easing compliance for MSMEs with renewed GST rates.
Been an advocate of GST for many years.Without it, India will never possess its own ‘Common Market.’ In order to coax small businesses to enter the ecosystem,we need Simplicity & Ease of Compliance. Glad the govt.is showing willingness to keep tweaking till that goal is reached https://t.co/bUiXauaMTd
— anand mahindra (@anandmahindra) November 11, 2017
However, a large portion of the MSME sector remains unaware of the long-term benefits of GST, simply because of the money, they need to pay when they register for GST. Find out what the future of GST means for MSMEs in this discussion with Nishank Goyal, CEO of Masters India.
Join us in conversation with Nishank Goyal, CEO of Masters India to discuss everything MSMEs need to know about GST and e-invoicing. Register here to receive a free ebook at the end of the webinar – https://bit.ly/2GiMVkq
Instamojo यांनी वर पोस्ट केले गुरुवार, १ ऑक्टोबर, २०२०
Indian MSMEs speak up and voice their concerns:
MSME sector is backbone of Indian Industry, but the BACKBONE of this backbone is broken…
We need relief not LOAN…
— Ayush Mangal 🇮🇳✋ (@ayushmangal28) August 12, 2020
An Indian MSME need a partner who can they trust on and who can collaborate with them on their Journey from Small to Medium and …Large.
— Siddharth Mishra (@siddharthgr88) December 23, 2010
It is need of hour , entrepreneurship must be promoted,exports must be promoted,Indian MSME's need promotion of export & more exposure ,this will bring international business & create more jobs,need to be more agressive in international marketing of indian msme's @nitin_gadkari
— Amitkumar Jain (@amitjainjtsec) June 11, 2019
This problem is across MSME in India. Not just one problem. Ask any MSME, they hate Indian customs.
Possible solutions are also provided.
— Murali Srinivasa (@MuraliSrinivasa) June 5, 2020
To cater to huge size of young population in the country, need is to have Indian Institute of Entrepreneurship or MSME University in each state, like erstwhile State specific Agriculture University.IIMs, produce managers, not employers/job creaters https://t.co/yg9EOU9bZX
— charan singh (@CharanSingh60) March 5, 2019
mojoVersity – an online university for MSMEs, startups, and entrepreneurs
The Indian government may come up with online learning aides for small businesses sometime in the future. Why wait until then when you can already start learning about any business aspect online?
Introducing mojoVersity – India’s first learning platform for businesses where anyone can take a course on business topics created and curated by experts.
Benefits of learning on mojoVersity:
- Learn on any device of your choice
- Get actionable courses and complete them in less than 1 hour
- Certificate of completion is given after the course
- ITS FREE!