S Dayaker Reddy: Happy with the fund allocation for MSME sector

The IPAMA compliments to the government of India for giving priority to the MSME sector, by allocating funds of Rs 15,700-crore, which is more than double compared to the last budget.

This will definitely give a boost to the sector which had suffered the most, as most of the MSME manufacturing units remained shut during the pandemic.

However, the government should consider providing financial assistance to the MSME manufacturing enterprises for setting up R&D units for development of latest technology, without which the survival of the industry will be at stake in the coming years, as adoption of new technologies by MSME units is a must to remain in competition in the international market. 

Another important point noted by the association is the 137% increase in the budget on health and well-being. The government has also given priority to infrastructure development activities like road transportation, railways, ports, shipping and waterways, etc, which will again give a boost to the MSME sector.

The construction sector has also been given its due share in the Union Budget, which is another step in the right direction.

We suggest to the government that incentives should be given to exporters directly and instantly into the exporters’ account.