MSME Sector Takes Centre Stage in Pre-Budget Discussions with FM

New Delhi, Jun 26 (KNN) In a crucial pre-Budget meeting held on Tuesday, the Micro, Small, and Medium Enterprise (MSME) sector emerged as a focal point of discussions between industry leaders and Finance Minister Nirmala Sitharaman.

The talks centred on enhancing the sector's competitiveness and boosting job creation through targeted financial allocations and policy initiatives.

Industry executives called for increased Budget allocation to facilitate skilling and upskilling of the MSME workforce, addressing the sector's evolving technological needs.

This request comes in recognition of the rapidly changing technological landscape and the need for MSMEs to stay competitive in both domestic and global markets.

Another key proposal was the introduction of skill vouchers to support re-skilling and up-skilling of MSME employees in emerging technologies.

Industry leaders also proposed an employment-linked incentive scheme for labour-intensive sectors such as toys, textiles, furniture, and tourism.

To promote gender diversity in the workforce, higher incentives for the incremental hiring of women were suggested. This proposal addresses the need for greater female participation in the MSME sector and the broader economy.

These recommendations come in the context of the previous interim Budget for FY25, which allocated Rs 22,138 crore to the MSME sector, maintaining the same level as the previous year. A significant portion of this allocation was directed towards establishing more clusters and new technology centres.

Finance Minister Sitharaman had previously emphasised the government's commitment to ensuring "timely and adequate finances, relevant technologies, and appropriate training for the MSMEs to grow and also compete globally."

The industry's focus on the MSME sector aligns with its widely recognised position as an engine of economic growth and job creation.

As Budget preparations continue, the response to these MSME-centric proposals will be keenly watched. Stakeholders across the economic spectrum are eagerly awaiting the government's decisions on these crucial matters affecting the MSME sector.

(KNN Bureau)