As Finance Minister Nirmala Sitharaman stood before Parliament to present her eighth consecutive union budget, India’s 63 million micro, small, and medium enterprises (MSMEs) glued their eyes on television screens with cautious hope. For a sector that fuels nearly 30 per cent of gross domestic product (GDP) and employs millions, this was supposed to be a roadmap to recovery. However, as the speech unfolded, optimism among several small businesses faded.

While some industry leaders view the government’s move to raise capital investment and turnover thresholds as a significant boost for the MSME sector, others express disappointment over the lack of measures to enhance financial and raw material market competitiveness, strengthen regulatory bodies, ensure timely justice, and resolve key regulatory challenges…read more