New Delhi, Jan 21 (KNN) The year 2019 has started on a happy note for Micro Small and Medium Enterprises (MSMEs) as they have already received GST relief ahead of Lok Sabha elections.

Keeping high expectations based on the past experiences, industry sector from diverse fields has lot many expectations from the upcoming interim Budget 2019. With number of fiscal reforms already in place for MSMEs, they expect more relief from government side as far as ease of doing business is concerned.

Various industry bodies have submitted the list of demands to the Finance Ministry, suggesting various policy measures to ease the financially challenges being faced by the MSME sector.

Here is the list, what MSME sector expects from the Modi-led government:

Easy Availability of Credit: Unavailability of loans is one of the biggest challenge being faced by the MSMEs. With decline in public sector banks’ (PSB) share in lending to the MSME sector, small businesses often fail to get loans on time and suffer financially. To address this concern, MSMEs want easy availability of credit to sustain and grow their operations. According to World Bank $230 billion is the current gap between demand and supply of credit within Indian MSME sector. MSMEs which contribute over 40% to the country’s GDP are starving for the capital to grow further.

Tax Incentives: MSME bodies like TANSTIA and MIWA has demanded various incentives from the upcoming budget including tax incentives. For the growth and welfare of industries, MSMEs want reduction in dividend tax and other forms of taxes. Whereas Bihar Chamber of Commerce & Industry (BCCI) suggested an inclusion of special section under Chapter VI of the Income Tax allowing 100% of the expenses done under CSR for skill Development/poverty eradication in the industrially backward areas by setting up their own centres or in collaboration with existing organisatons/Government.

Enhancement of Digital Support: With rising use of technology, digital transformation is the need of an hour for businesses in India. Although the costs for going digital are not high, but the speed of adoption is a major issue for most SMEs which needs to be addressed properly.

Innovation Promotion: In order to strengthen the competitiveness of MSME sector, it is necessary that government must include some measures in the Budget 2019 to promote innovation by facilitating funding their innovative projects and ideas. Though government has been taking measures to promote it but at funding level many MSMEs face challenges which needs immediate attention of government.

The interim Budget 2019 is scheduled to be presented by Finance Minister Arun Jaitley on February 1, 2019. An interim budget covers a smaller period of time, usually few months. This Budget is the last before the general election due by May.