Digital Dhamaka: How Budget 2024 can empower MSMEs through technology adoption and access to e-commerce platforms

livemint.com:

Union Budget 2024-2025 is expected to have a significant impact on the MSME sector, which is considered the backbone of India’s economy as it contributes to about 30% of our GDP, 48% of exports, and employs over 11 crore people. “Allocation of more funds for the ‘Raising and Accelerating MSME Performance’ (RAMP) scheme would provide major financial and technical support to MSMEs.

This would help MSMEs upgrade their technology, adopt digital solutions, improve quality standards, and access new markets," said Ankit Singh Kimtee, Founder & CEO, of DiamondXE. Measures to promote e-commerce among MSMEs such as simplifying the regulatory framework, providing tax benefits, and creating infrastructure for logistics and digital payments will be welcome.

This would help MSMEs reach a wider customer base, reduce operational costs, and enhance customer experience, added Ankit Singh Kimtee The budget may also support the implementation of the ‘Open Network for Digital Commerce’ (ONDC) initiative, which can help MSMEs access multiple e-commerce platforms without any entry barriers and benefit from the standardization of data and processes, said Kimtee. The evolution of MSMEs can be credited to technology advancements that surged to cater to dynamic consumer preferences, global trends, and variable market conditions.

The 2023 budget revolved around inclusive development by allocating a ₹10,000 crore fund to MSMEs in a bid to foster technological developments and infrastructural support. “E-commerce adoption will help MSMEs in tapping into domestic and international markets and drive economic growth.