Bengaluru, NFAPost: Confederation of Indian MSME in ESDM & IT(CIMEI) on Tuesday lauded the Union Budget 2024 presented by Finance Minister Nirmala Sitharaman with new and additional employment incentives across manufacturing and other sectors will encourage workforce growth and bolster the Make in India initiative.
Commenting on the new Budget, Confederation of Indian MSME in ESDM & IT (CIMEI) Director General Jairaj Srinivas said these incentives complement existing PLI schemes and provide additional income tax benefits for hiring more employees.
“The proposal to reimburse employers upto Rs 3000 per month for 2 years for employee’s provident fund contributions is an interesting change with the government lending a hand and nudging employers towards new employment generation,” said Confederation of Indian MSME in ESDM & IT (CIMEI) Director General Jairaj Srinivas.
Additionally, CIMEI officials said the new scheme will provide a month’s wage and contribute to provident fund, applicable to new workforce in formal sectors, thereby encouraging new hires.
“Other applicable conditions for the benefits remain to be seen, but definitely a step in the right direction to address a key issue of employment. These initiatives address the major issue for MSMEs today which is access to Credit by increasing the reach and reducing the threshold,” said Confederation of Indian MSME in ESDM & IT (CIMEI) Director General Jairaj Srinivas.
CIMEI also lauded the access to finance is a critical barrier for many MSMEs looking to scale their operations and modernize their production processes.
“This initiative not only alleviates financial constraints but also encourages technological advancements and productivity improvements within the sector. We advise MSMEs to leverage this opportunity to invest in state-of-the-art machinery and equipment, which can lead to enhanced operational efficiency and better market positioning,” said Confederation of Indian MSME in ESDM & IT (CIMEI) Director General Jairaj Srinivas.
The association also lauded the Budget initiative to focus on providing funding through banks to MSME is a great initiative.
- Providing collateral free loans using a credit guarantee schemes
- Alternate methods to evaluate eligibility of MSME for loan
- Increasing Mudra threshold to 20 L for MSME which have successfully paid back the loan before
- Increasing reach of institutions through SIDBI etc.
Confederation of Indian MSME in ESDM & IT (CIMEI) Director General Jairaj Srinivas said the organisation is looking forward to witnessing its positive impact on the growth and sustainability of businesses across the country.
CIMEI is a PAN India Trade Association of entrepreneurs from ESDM, Information Technology segment of MSME across the nation.
