Every year budget announcement is awaited majorly for relief measures either Tax relief or subsidies or encouraging some tariff barriers.
I came from a very big community with a very small say in every strategic political-economic decision called the SME sector, although its considered being the backbone of the economy but the least policies are made considering them.
We SME’s are the middle class of the business society who contributes maximum to the society but are always left behind while considering their demands. We all are coming out of covid and are cash strapped so need a thoughtful policy from the government in developing an ecosystem for the generation of finance or funding for SMEs in the manufacturing, trading and service sector.
Government is promoting and incubating new age economy startups and even so-called angel investors are ready to invest in these economies due to high Operating margins but if we want wealth and employment generation and have the desire to create a large manufacturing base like China we have to invest in old age economy which deals in manufacturing and trading of commodities where you require large scale establishments and that can only be possible with investment.
Banks should also start thinking as financial partners and RBI should allow them to convert debt into equity in order to make the model more scalable and competitive. We do not need SHARKS IN-TANK but a lot of NEMOs who can help fellow businessmen in coming out of the small economy trap and merge into a large business ocean. Also the government has to think in giving credit assurance to SMEs, we give credit in the market in order to create a greasing effect in the system but finally, we fall on the face when SMEs are not paid and comm. Cases take years to settle. I hope in this budget, Government will come out to be MY FRIEND NEMO.”
Views expressed in this article are the personal opinion of Shobhit Singh, Director, Stone Sapphire India Private Limited.