Budget Reactions | Moin Ladha, Partner, Khaitan & Co. Comments On MSME, Start Ups

The Union Finance Minister Nirmala Sitharaman introduced the Budget in the Parliament today.

Moin Ladha, Partner at Khaitan & Co. said, "Start up if incentivised well will be able to improve the distribution/funding and profitability for agricultural produce. This being one of the key focus areas in this budget. Special incentives for manufacturing sector which is anyways labour intensive will make the sector more attractive for foreign direct investment and will fosters growth of this sector. However, this being limited to first time employees will create a challenge regarding the ability of such employees to be involved in skilled jobs."

“The government has announced schemes to provide (i) education loans of up to INR 10 lakhs for students studying in domestic institution with an interest rate of 3%, and (ii) loans of up to INR 7.5 Lakhs for individuals backed by guarantee from a government fund for promoting business skill development. The schemes are in line with government’s other schemes to make India ‘aatmanirbhar’ such as Make in Bharat and establishment of  GIFT City to encourage investments in India. This will not only reduce foreign exchange spending but will also provide relevant opportunity to students for growth /employment and evaluations entrepreneurial opportunities,” said Ladha.

“Keeping the promise of Viksit Bharat, the government has not left the MSME sectors behind. The budget promises to prioritise strengthening and aiding the MSME sector by introducing credit guarantee schemes, continuing guarantee covers during stress period and developing e-commerce hubs for MSMEs to compete in the global market. With India being the hub of global trade, empowering small and medium businesses will be a step towards our mission of continued growth,” Ladha further said.