Digital Dhamaka: How Budget 2024 can empower MSMEs

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Budget 2024: Micro, Small, and Medium Enterprises (MSMEs) are hailed as the growth engines of the Indian ecosystem. The 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. Budget allocation allowing MSMEs to incorporate e-commerce platforms into their business strategy will facilitate sustainable development. ONDC would also play an integral role in shaping the MSME ecosystem by helping MSME suppliers reach a larger customer pool and leverage diverse logistics to accelerate growth,” said Delphin Varghese, Co-founder & Chief Business Officer, AdCounty Media

Artificial Intelligence (AI) emerges as a transformative force for MSMEs in e-commerce. “The integration of AI in e-commerce platforms propels MSME growth, boosting profits and sales for a sustainable future. Moreover, AI-based loans streamline financial processes, automating the assessment of loan applications. This innovation, utilizing machine learning, enables quicker and more informed lending decisions, providing tailored credit lines to meet MSMEs’ unique business needs. This synergy of AI applications marks a pivotal step toward efficiency and success in the dynamic e-commerce landscape,” said Hariom Seth, Founder, of Tagglabs.

“By prioritizing accessibility to e-commerce platforms and incentivizing tech adoption, we pave the path for their evolution. Embracing digital solutions ignites an ecosystem of opportunities, enabling MSMEs to thrive in a competitive landscape,” said Archit Agarwal, Founder & CEO, of Tikshark Solutions.

Finance Minister Nirmala Sitharaman will present the interim budget on February 1 in the Lok Sabha.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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