Indian Budget 2024 to Boost MSMEs: Tech Upgrades, E-commerce Promotion, and AI Integration Expected
The Union Budget 2024-2025 is anticipated to have a significant impact on the Micro, Small, and Medium Enterprises (MSME) sector in India. Considered as the backbone of the economy, MSMEs contribute around 30% of the country’s GDP, 48% of exports, and provide employment to over 11 crore people.
To provide major financial and technical support to MSMEs, the budget is expected to allocate more funds for the ‘Raising and Accelerating MSME Performance’ (RAMP) scheme. This will assist MSMEs in upgrading their technology, adopting digital solutions, improving quality standards, and accessing new markets.
In recognition of the importance of e-commerce for MSMEs, the budget may introduce measures to promote its growth. This could involve simplifying the regulatory framework, offering tax benefits, and creating infrastructure for logistics and digital payments. These initiatives would enable MSMEs to reach a wider customer base, reduce operational costs, and enhance the overall customer experience.
Additionally, the budget may support the implementation of the ‘Open Network for Digital Commerce’ (ONDC) initiative. The ONDC can facilitate MSMEs’ access to multiple e-commerce platforms without any entry barriers, while also benefiting from standardized data and processes.
Technological advancements have played a crucial role in the evolution of MSMEs to cater to dynamic consumer preferences, global trends, and variable market conditions. In the previous year’s budget, a significant fund of ₹10,000 crore was allocated to MSMEs to foster technological developments and infrastructural support.
The adoption of e-commerce platforms will enable MSMEs to tap into domestic and international markets, driving economic growth. By incorporating e-commerce platforms into their business strategies, MSMEs can experience sustainable development. The ONDC will play a key role in shaping the MSME ecosystem by allowing MSME suppliers to reach a larger customer base and leverage diverse logistics networks.
Artificial Intelligence (AI) is emerging as a transformative force for MSMEs in the e-commerce sector. The integration of AI in e-commerce platforms can propel MSME growth, boosting profits and sales for a sustainable future. AI-based loans, utilizing machine learning, streamline financial processes and automate the assessment of loan applications. This innovation enables quicker and more informed lending decisions, providing tailored credit lines to meet the unique business needs of MSMEs. The utilization of AI applications marks a pivotal step toward efficiency and success in the dynamic e-commerce landscape.
The Finance Minister, Nirmala Sitharaman, is scheduled to present the interim budget on February 1 in the Lok Sabha. The outcome of the budget’s provisions and allocations will have a profound effect on the growth and development of the MSME sector in India.
Disclaimer: The views and recommendations mentioned in this article are those of individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
[Reference news articles:
– Budget 2024: MSMEs expect major boost with enhanced allocation for technical support – Livemint
– Indian Budget 2024: Tech Upgrades, E-commerce promotion, and AI integration expected for MSMEs – AdCounty Media]
