Union Budget 2021: Steps taken to revitalize the MSME sector and user in new growth

We all had our gaze fixed on our screens as the Finance Minister presented the very first paperless union budget. Considering the lockdown aftershocks that various industries had to go through in the past year, every Indian held immense expectations from the Union Budget 2021.

Aiming to uplift the economy and make the nation self-reliant, FM Nirmala Sitharaman made some crucial announcements for the MSME sector

Here's a brief breakdown of what is in store for the fast-evolving MSME industry:  

1. Budget allocation doubled for MSME- Majority of the allocation is for the Emergency Credit Line Guarantee Scheme (A scheme previously announced to help MSMEs revive from the aftershock of the lockdown).

2. Exemption in customs duty- Customs duties on steel and ferrous/non-ferrous scrap have been reduced, thereby reducing the overall cost for such raw materials.

3. Moving forward towards an Aatmanirbhar Bharat

4. Incentivising Digital Payments-Living up to the industry's expectations of providing a boost for digital financial payments, the government has allocated a  budget of Rs. 1,500 crore to incentivize digital modes of payments.

Supporting the Startup set-up:

A faceless income tax appellate tribunal & e-courts set up for contractual disputes to strengthen NCLT and increase investor confidence.

NRI investment in the industry has been made easy with a reduction of the residency limit to 120 days.