Tag MSMEs

Mr. Faiz Askari, Founder of SMEStreet shares an overview on Modi 3.0’s Budget 2024 presented by FM Nirmala Sitharaman on 23rd July 2024.

Mr Faiz Askari stated, “The Union Budget 2024 sets forth an ambitious blueprint aimed at transforming India into a developed nation. Central to this vision is substantial investment in infrastructure, encompassing transportation networks, energy projects, and digital connectivity, all designed to bolster economic growth and enhance nationwide connectivity. The healthcare sector sees a significant boost, with increased funding for public health infrastructure, expanded health insurance coverage, and improved access to essential medicines, ensuring a healthier population. Education and skill development are prioritized, with allocations for digital education, vocational training, and higher education to cultivate a skilled and future-ready workforce.

In alignment with global sustainability goals, the budget promotes a green economy through initiatives encouraging renewable energy adoption, carbon emission reduction, and sustainable practices. This includes incentives for electric vehicles, solar energy projects, and the integration of green technologies. Agriculture and rural development receive focused attention, with measures to improve credit access for farmers, modernize agricultural practices, and enhance rural infrastructure, aiming to double farmers’ incomes and secure food supplies.

To drive technological advancement and innovation, the budget invests in research and development, supports startups, and fosters a culture of innovation, enhancing India’s global competitiveness. Financial inclusion initiatives ensure broader access to banking and financial services, particularly for underserved and rural populations, through digital banking and financial literacy programs.

Social welfare schemes are bolstered to support marginalized and vulnerable populations, with increased provisions for affordable housing, social insurance, and aid for senior citizens and differently-abled individuals. The ease of doing business is improved through streamlined regulatory processes, reduced bureaucratic hurdles, and incentives to attract entrepreneurship and foreign investments. National security is strengthened with increased defense spending, modernization of the armed forces, and enhanced border security measures.

From SMEStreet’s perspective, the Union Budget 2024 is particularly promising for the MSME sector. The enhanced allocation for the Credit Guarantee Scheme is seen as a crucial step in bridging the credit gap for small businesses, ensuring they have the necessary financial support to thrive. Tax relief measures and simplified compliance procedures are expected to ease the financial burden on MSMEs, fostering a more conducive environment for growth and formalization. Investment in digital infrastructure will enable MSMEs to adopt digital tools and technologies, enhancing their competitiveness in a rapidly evolving market. Skill development programs tailored for MSMEs are poised to upgrade the workforce, promoting productivity and innovation within the sector. Additionally, export promotion measures, streamlined regulatory processes, and incentives for green technologies are set to empower MSMEs, driving their growth and sustainability. Overall, SMEStreet views the budget as a comprehensive plan that not only aims to build a developed India but also ensures that MSMEs play a pivotal role in this transformation.”

Anuj Puri, Chairman – ANAROCK Group

Covering a wide spectrum of Indian sectors, the first Union Budget of Modi 3.0 focuses on MSMEs, employment, skilling, youth, and the middle class. It will generate a mixed bag of reactions from different sectors. From a real estate point of view, the first thing that stands out is the government’s continued focus on infrastructure with an allocation of over INR 11.11 lakh crore – nearly 3.4% of India’s GDP. Improved infrastructure drives real estate growth.

The focus on rural and urban job creation, if effective, may provide some boost to affordable housing, which has given a tepid performance since the pandemic. The move can help stir up housing demand in not just the top 7 cities but also the tier 2 and 3 cities.

With an eye on the housing needs of the urban poor and the middle class, the government has announced that it intends to construct an additional one crore homes under PMAY Urban 2.0 with an outlay of INR 10 lakh crore.

Mega allocation for the Hyderabad-Bengaluru industrial corridor and Vizag-Chennai corridor will boost growth along these corridors and consequently boost real estate growth there. The FM also tried to rejuvenate the MSME sector, which does have a multiplier effect on overall economic growth – with the implied positives for real estate as a collateral beneficiary of such growth.

The credit guarantee scheme for the MSMEs will help provide impetus to overall industrial development, and this can have a rub-off effect on the real estate sector. The pandemic had a catastrophic impact on the MSME sector, which slowed down the demand for affordable housing since 2020. Affordable housing demand may gain momentum once the economic impact of the pandemic subsides for this target audience.

This is certainly pertinent – the affordable homes category (<INR 40 lakh) has been seeing a decline in overall sales since the pandemic, to approx. 19% in H1 2024 from over 38% in the period before the pandemic in 2019. Consequently, this segment’s percentage share of the total housing supply in the top 7 cities also fell to 18% in H1 2024 from nearly 40% in 2019. Any boost to this vital segment is therefore welcome.

For individual taxpayers taxpayers under the new tax regime, the increased standard deduction limit to INR 75,000 from the previous INR 50,000 along with the new income tax slabs implies savings – but hardly enough to boost housing demand.

Other highlights pertinent to real estate:

• 12 Industrial Parks to be sanctioned.
• Rental housing with dormitory-type accommodation for industrial workers will be facilitated under the PPP-mode.
• Brownfield redevelopment of cities under the PPP mode lays open opportunities for real estate development
• Tourism boost to states of Odisha and Bihar

Bangalore, 18 July,2024 – Incuspaze, India’s leading workspace provider, expands its portfolio in Bangalore with an acquisition of 1.15 lakh sq ft office space lease in the Whitefield, a major hub for the Tech Industry. This strategic move enhances Incuspaze’s presence in one of Bengaluru’s key commercial hubs, ensuring easy connectivity to major office areas in the city.

The new facility will accommodate 1,800 seats and features a comprehensive range of amenities, including training rooms, webinar rooms, conference rooms, meeting spaces, a breakout zone and networking areas. Additionally, the workspace boasts dedicated parking, a spacious cafeteria with an in-house kitchen, and much more, making it one of the most preferred workspaces in Bengaluru.

“Our new facility is designed to foster creativity and collaboration among businesses,” said Sanjay Choudhary, Founder and CEO of Incuspaze. “With our ongoing expansion in Bangalore and our plans for Chennai and Hyderabad, we are committed to providing tailored workspace solutions that support the diverse needs of our clients.

Incuspaze is set to expand its portfolio in southern India, with ORR micro market in Bangalore and further entering key markets in Chennai and Hyderabad. As part of our ambitious growth plan, the company is targeting over 2 million square feet of workspace take-up over the next two years. This growth strategy highlights the company’s dedication to revolutionizing workspace experiences across India.”

“With a motive to cater the rising demands of today’s corporate clan, it is crucial for us to expand through the length and breadth of India,” said Sanjay Chatrath, Managing Partner, Incuspaze. “With our expansion in the South- India, we are excited to move ahead by catering to this region’s dynamic business environment and growing entrepreneurial ecosystem to make it the perfect location for our latest venture. Our new facilities are designed to foster collaboration, innovation, and productivity, providing businesses of all sizes with the flexibility and resources they need to thrive.”

Nestled in the heart of Whitefield, this standalone building is just 50 meters from the metro station, providing exceptional connectivity. The location is strategically positioned near prominent campuses of Fortune 500 companies. Additionally, essential amenities such as hospitals and markets are conveniently located within 100 meters, enhancing the convenience for residents and visitors alike. With ample car parking available, this property combines accessibility with comfort, making it a prime choice for both businesses and individuals.

Since its inception in 2016, Incuspaze has quickly become a leader in the workspace sector, now boasting 44 locations across 18 cities and a total portfolio of 3 million square feet. The company embraces the ‘space-as-a-service’ model, integrating technology with real estate to deliver innovative solutions tailored for enterprises, MSMEs, and startups.

Incuspaze’s extensive portfolio allows businesses to set up offices based on client’s preferred locations, enhancing operational flexibility and convenience. By offering customized solutions that include asset choice, design, workspace branding, and tailored IT support, Incuspaze ensures that workspaces reflect the unique needs and branding of its clients.

 16 July 2024 – As the Indian government prepares for its maiden budget under a newly formed administration, the spotlight on Micro, Small, and Medium Enterprises (MSMEs) remains steadfast. Central to this year’s budgetary aspirations is the digital empowerment of MSMEs through e-commerce over the next five years. This strategic focus not only promises to bolster economic growth but also aligns closely with global Sustainable Development Goals (SDGs).

Addressing the Skills Gap:
A critical hurdle facing MSMEs today is the significant skills gap in leveraging e-commerce platforms effectively. Many small businesses lack the necessary expertise to navigate digital marketplaces and capitalize on online opportunities. To address this, comprehensive handholding and counseling programs are essential. The budget should earmark resources for initiatives aimed at enhancing digital literacy and technical capabilities among MSMEs.

Enhancing Collaboration with E-commerce Marketplaces:
Collaboration between MSMEs and e-commerce marketplaces can play a pivotal role in bridging the knowledge gap. By fostering closer ties with local institutions and industry leaders, MSMEs can gain access to crucial technical know-how and support services. The budget must encourage and incentivize such partnerships to strengthen the e-commerce ecosystem at the grassroots level.

Building on Government Initiatives:
The Indian Foreign Trade Policy’s ambitious target of $200-300 billion exports for e-commerce by 2030 and initiatives like the Open Network for Digital Commerce (ONDC) have laid a robust foundation for the e-commerce sector’s growth. Looking ahead, the expectation from Union Budget 2024 is to build upon these initiatives. There is a pressing need for increased funding directed towards capacity building and real-time interventions that enable MSMEs to harness the full potential of e-commerce platforms.

Harnessing E-commerce Hubs for Export Promotion:
The concept of e-commerce hubs, currently under discussion by the government, presents a unique opportunity to amplify India’s export capabilities through online channels. By integrating e-commerce marketplaces into these hubs, the government can catalyze international trade and position Indian MSMEs on a global stage. The budget should prioritize investments in infrastructure and logistics to facilitate seamless cross-border e-commerce transactions.

Incentivizing Warehousing in Bonded Zones:
A critical aspect of facilitating e-commerce growth lies in incentivizing the development of warehousing facilities in bonded zones. This move would streamline the import and export processes for e-commerce cargos, reducing logistical bottlenecks and enhancing operational efficiency. Budgetary allocations towards this end would be a decisive step towards nurturing a conducive environment for e-commerce expansion.

In conclusion, the Union Budget 2024 presents a pivotal opportunity to propel the MSME sector forward through digital enablement via e-commerce. By focusing on skills development, fostering collaboration with e-commerce platforms, and bolstering supportive infrastructure, the government can pave the way for inclusive growth and sustainable development aligned with global aspirations. As stakeholders eagerly await the budget announcements, the anticipation is high for policies and provisions that will empower MSMEs to thrive in the digital age.

Quote by Anuraag Gambhir, MD, Shopclues

“In the forthcoming Union Budget for 2024-25, India stands at a critical juncture to empower its MSMEs through transformative digital strategies in e-commerce. As the maiden budget of a new government, the focus on digital enablement over the next five years promises to catalyze economic growth.

Addressing the existing skills gap between MSMEs is paramount, necessitating robust handholding and counselling programs to enhance digital literacy and technical proficiency. Collaborative efforts with e-commerce marketplaces and local institutions are pivotal in bridging these gaps. Fostering a supportive ecosystem that empowers small businesses across the country is the need of the hour. Building on foundational initiatives e-commerce exports and ONDC, the budget must prioritize substantial investments in capacity building and real-time interventions for MSMEs. These measures are crucial to ensure MSMEs can harness the full potential of digital platforms effectively.

As the concept of e-commerce export hubs emerging as a strategic lever for enhancing India’s export prowess through online channels, requiring seamless integration with existing market dynamics. Simultaneously, incentivizing warehousing facilities in envisaged zones for e-commerce cargos will streamline logistics, bolstering operational efficiencies and facilitating smoother international trade. As stakeholders eagerly await budgetary announcements, the anticipation is palpable for policies that will not only empower MSMEs but also propel India towards inclusive growth and sustainable development on a global scale.”

1st July 2024: E-commerce has significantly enhanced MSME capabilities by offering global market access, reducing operational costs, and providing efficient tools for inventory management and payment processing. While e-commerce platforms have enabled MSMEs streamline their logistics and use digital marketing to enhance visibility and sales certain GST registration requirements have proved a limiter their growth and economic contributions. The Bengal Chamber of Commerce and Industry (BCC&I) hosted a session, titled ‘Seamless E-Commerce Platform Operation for Sellers and Compliance,’ where experts deliberated on the challenges faced by MSMEs in the e-commerce sector under the current GST regime and deliberated possibilities to enhance ease of doing business.

Sellers highlighted that many MSMEs find the registration procedure rigorous as it varies from state to state, with numerous applications being denied for reasons that at times appear unclear. They also highlighted that the current Principal Place of Business (PPOB) registration regulations, which mandates a brick and mortar set up to accommodate business operations, compulsory employee presence, specification on space dimension impose financial and operational burdens on MSMEs in an increasingly digital-oriented business environment. Sellers are also facing issues with biometric requirements, since they need to be physically present for verification, complicating remote or digital business operations. While appreciating contributions of the state government of West Bengal towards MSME’s platformed on e-commerce, the sellers urged support from the State of West Bengal in inclining the need of one home state PPOB registration with other States to provision Ease of Business based on their optimism of the state of west Bengal

During the session, experts praised the State of West Bengal government for embracing shared space model in respect of registration while exercising due caution. However, they emphasized the urgent need for broader acceptance and swift integration of the PPOB model for MSMEs. This model simplifies regulatory compliance, reduces administrative burdens, and streamlines operations for MSMEs in shared e-commerce spaces. Secondly, the PPOB model promotes resource sharing among MSMEs, enabling them to pool logistics, warehousing, and other essential services. Thirdly, by easing entry barriers and fostering a more supportive environment for MSMEs, the PPOB model can stimulate entrepreneurship and innovation. They also recommended that the government introduce digital invoicing to simplify GST compliance for MSMEs, helping reduce paperwork and errors, and enhance efficiency. They also called for clearer guidelines tailored to the unique nature of co-working spaces to address classification and taxation issues. Collaboration between retailers and tax authorities was highlighted as crucial for addressing concerns and establishing mutually agreeable solutions.

Sri Devi Prasad Karnam, Commissioner, State Tax, West Bengal, said “We have adopted a pragmatic approach to business registration that aligns with the realities of modern e-commerce. Our policy understands shared space and coupled with exercising due caution we endeavour to foster a more conducive environment for MSMEs and small sellers. We hope to see ease in compliance and more acceptance for MSMEs in the times to come across states. By doing so, we can collectively support our MSME sector, drive economic growth, and create a more competitive and inclusive business landscape across India.”

Speaking on this, Sri Debashis Bandyopadhyay, IAS, Special Secretary, Department of MSME & Textiles, Government of West Bengal said, “West Bengal stands at the forefront of India’s MSME landscape, hosting nearly 89 lakh units across manufacturing, trading, and other sectors. The state boasts over 29 lakh MSME entrepreneurs, constituting 32.7% of the nation’s MSME enterprises and providing employment to 1.36 crore individuals, prominently in manufacturing. The state government has catalyzed growth with initiatives like the expansion of the textile sector, easing monitored yet safe entrance norms to the State which showcases the state’s commitment towards supporting local industries and fostering MSME growth through strategic policies.”

Hyderabad, 8th February 2024: BioAsia, Asia’s premier life sciences and Health Tech forum, is proud to announce its partnership with the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, for the upcoming 21st edition of the event. Scheduled to take place from February 26 to 28, 2024, in Hyderabad, BioAsia 2024 promises to be a pivotal platform for fostering growth and innovation within the MSME sector.

 The collaboration with the Ministry of MSME underscores BioAsia’s commitment, in line with the Government’s vision, to promoting the growth and development of small and medium-sized enterprises, which play a crucial role in India’s burgeoning life sciences industry. With a dedicated MSME Pavilion featuring leading companies from the sector, BioAsia 2024 offers a unique opportunity for MSMEs to forge key partnerships, expand their businesses, and showcase India’s prowess in the global life sciences arena. Through the Procurement & Market Support (PMS) – Market Access Initiatives of Development and Facilitation Office (DFO), the cost of participation for MSMEs are being subsidized upto 100%.

 Expressing his enthusiasm, Mr. Sridhar Babu, Hon’ble Minister for Industries and Information Technology, Telangana, stated, “The new government in Telangana is dedicated to fostering the growth of MSMEs as the driving force of our economy. BioAsia 2024 will provide a platform for MSMEs to thrive, innovate, and contribute to the advancement of the life sciences sector. Further, I am optimistic that this collaborative endeavour will facilitate the enhancement of technical acumen, bolster infrastructure, and optimize the utilization of shared resources”.

 Mr. Jayesh Ranjan, IAS, Principal Secretary of the Industries & Commerce Department, Government of Telangana, remarked, “Over the preceding two decades, we have observed the participation of numerous global and local players within the healthcare and life science realm as contributors to BioAsia. MSMEs have stood as an indispensable component of BioAsia’s landscape over time, and we take great pleasure i perpetuating our affiliation with the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India”.

 Mr. D. Chandra Sekhar, Additional Development Commissioner, Development and Facilitation Office (DFO), Hyderabad, articulated, “21st edition of BioAsia, themed ‘Transforming Life Sciences with Data and AI’, is poised to propel the growth prospects for MSME units in India, harnessing its catalyzing investments and global openings within the life sciences domain. Through our engagement and involvement in BioAsia 2024, we anticipate that MSME stakeholders will derive substantial advantages from its elevated prominence within the global healthcare industries.”

 “BioAsia has a legacy of bringing together industry leaders, innovators, and policymakers to drive meaningful change in the healthcare sector. With the inclusion of MSMEs as a focal point, BioAsia 2024 will further strengthen our collective efforts to democratize healthcare and foster innovation for the benefit of society,” said Mr. Shakthi Nagappan, Director (Life Sciences) and CEO (BioAsia).

 Over the years, the event has immensely benefitted from its participant history including the likes of several Nobel Prize winners, Lasker Awardees and eminent industry leaders like Mr. Bill Gates (Chair, Gates Foundation), Mr. Satya Nadella (CEO of Microsoft), Mr. Alex Gorsky (Executive Chairman, Johnson & Johnson), Dr. Vas Narasimhan (CEO, Novartis), Mr. Geoff Martha (Chairman & CEO, Medtronic), besides hosting the Country Ministers and Delegates from Asia, America, Africa, and Europe. Being the first edition post-pandemic, BioAsia 2023 was extremely successful with the virtual participation of more than 3000 global participants from over 50+ Countries.