New Delhi, July 5 (KNN) The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.

However, despite that MSMEs often face a multitude of challenges that restrict their growth and development. Plagued with numerous challenges like insufficient funds, limited access to credit, competition from large industries, MSMEs have been lagging behind.

From Union Budget 2019 that will be presented today by the Union Finance Minister, Nirmala Sitharaman, MSMEs have high expectations. Below are the five expectations of MSMEs from the upcoming budget:

Interest Subvention on Loans: MSMEs want interest subvention of loans as access to credit has become a biggest challenge for them. High interest loans poses problem for them in accessing finance from banks.

Reduction in GST rates: Though GST decisions are taken by GST Council, however MSMEs want Finance Minister to act upon GST rates. They want Government to reduce the tax slab on GST from 18% to 5% which will not only benefit the industry but also allow them to flourish in a market where there is excessive competition.

Credit Linked Capital Subsidy Scheme (CLCSS): MSMEs want the re-starting of the CLCSS Scheme with fresh lucrative term to attract the Indian MSMEs.

Market support Assistance: MSMEs wish for proper market support assistance from government, so that they can market their products both domestically and internationally.

Alternative financing options: Getting access to institutional credit has been one of the major problems of the MSMEs and to solve this problem, alternative financing options like P2P lending can turn a milestone.