Budget 2020-21: Financial inclusion is the need of the hour for MSMEs, says Economist
The slowdown in economy with falling exports and increasing trade wars between countries has put the industries, especially the micro small and medium enterprises (MSMEs), under stress.
There is replicating effect of global as well as domestic factors impacting the export, import and entire global value chain. In this time of crisis, all eyes are set on the first full fledged budget of the second term of BJP government. The micro small and medium enterprise comprises of millions of industries belonging to various sectors. They all have different needs and differebt demands.
To meet their requirements, the MSME ministry has also sought a budgetary allocation of Rs 12,000 crore for the financial year 2020-21, a jump of 70% of the allocation for the current fiscal.
KNN India spoke to Yogendra Kapoor, an Economist as well as Tax Expert to know what the real economy needs at the moment.
Kapoor opined that the credit is a lifeline for the MSME businesses and in the absence of it, the businesses will just die.
So the need of the hour is to facilitate credit for the sector to help them flourish. (Watch Full Interview)