Industry experts believe that the Union budget presented by the Finance Minister Nirmala Sitharaman bodes well for the already challenged MSME segment in India that has been badly hit by the Covid-19 pandemic. The fine part has been the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) for the Micro, Small and Medium Enterprises (MSMEs) by one more year. This will help the MSME segment to have better credit flows and will help them in their economic growth. The raising and accelerating MSME Performance (RAMP) programme with Rs 6,000 crore outlay over the next five years is also expected to help the segment further.
“In a bid to make MSMEs more resilient and competitive, the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023 is a critical step. This measure will ensure the continued hand holding of MSMEs, which accounts for more than 30 per cent of India's GDP and remains an important engine of economic growth, job creation, income generation and livelihood support. In addition, the proposal to skill both entrepreneurs and students with the help of technology will empower and enhance the productivity of the country altogether,” remarked Anand Kumar Bajaj, Founder, MD and CEO, PayNearby.
On the other hand, the logistics sector is also upbeat by some of the announcements in the budget. Many industry representatives from this sector have welcomed the move to set up a Unified Logistics Interface Platform. “Leveraging technology to complement the development of infrastructure will help bring in better efficiency. Furthermore, with real-time tracking, and inventory management as a part of the platform, it will go a long way in bringing India at par with global supply chain networks,” said Dhruvil Sanghvi, Founder and CEO, LogiNext.
Many experts also are of the opinion that the focus on multi modal connectivity through the PM Gati Shakti programme between mass transport and railway stations, setting up 100 New Cargo Terminals in the next three years, expansion of highways and railway development projects will give entrepreneurs more confidence to invest in the sector.
“The government’s drive to encourage integrated logistics and multi-modal connectivity is definitely a positive move towards the progress of the logistics industry in India. The new proposed measures under the PM ‘Gati Shakti’ plan for expanding the National Highway Network by 25,000 kms in 2022-23 will further boost logistics connectivity and improve last mile deliveries. Additionally, the one window platform for the exchange of data among all stakeholders will bring in more transparency and ensure ease of doing business for leading enterprises as well as Indian logistics startups, providing real-time information, enabling efficiency and reducing the overall logistics cost and time,” pointed out Vivek Chopra, acting CEO – Cluster India and Indian Sub-Continent, DB Schenker.
