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The sector has the potential to contribute 40% to GDP by 2030 with the right investments and reforms. How can Budget 2025 factor in this key segment to uplift the economy? Sameer Gogia, Executive Director, Deloitte India says strengthening the MSME ecosystem with supportive fiscal policies, improved infrastructure and enhanced access to technology is essential for unlocking the sector's full potential. “This will propel India towards a $5 trillion economy, with the MSME sector projected to reach $1 trillion by 2028,” he states.
Gogia advises measures to improve cash flows so that liquidity challenges are addressed for the sector. “Tax incentives, such as extending a concessional corporate tax rate of 15% for new manufacturing companies, rationalising multiple TDS/TCS rates into a simpler structure and easing GST compliance norms, including harmonising input tax credits, are proposed to facilitate capital requirements and reduce compliance burdens for MSMEs. Maintaining a focus on public capital expenditure, particularly in physical, social, and digital infrastructure, is deemed essential for sustaining growth momentum,” he says.
Harshit Aggarwal, Founder & CEO of Novamax Appliances, an electric appliances manufacturer, states that the upcoming budget can play a critical role by accessing affordable credit for MSMEs through expanded schemes of
