Budget 2024: PSU banks will develop in-house capabilities for credit assessment of MSMEs
Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 in the Lok Sabha on Tuesday, highlighting several key initiatives aimed at supporting micro, small, and medium enterprises (MSMEs).
Key Measures for MSMEs
Credit Assessment Capability
Public sector banks will develop in-house capabilities for credit assessment of MSMEs, improving their ability to support small businesses effectively.
Credit Guarantee Scheme
A ₹100 crore credit guarantee scheme was announced, facilitating term loans for MSMEs without the need for collateral or third-party guarantees.
TReDS Platform
The turnover threshold for mandatory onboarding of MSME buyers on the Trade Receivables Discounting System (TReDS) platform will be reduced from ₹500 crore to ₹250 crore. TReDS is an online platform that helps MSMEs with their financial needs.
SIDBI Expansion
The Small Industries Development Bank of India (SIDBI) will open 24 new branches to serve MSME clusters better.
Other Budget Highlights
Meeting with the President
Before presenting the budget, Sitharaman met President Droupadi Murmu at Rashtrapati Bhavan.
Record-Breaking Budget
This Union Budget marks Nirmala Sitharaman’s seventh consecutive budget, surpassing the late Morarji Desai’s record of six consecutive budgets.
Rural Development
₹2.66 lakh crore is allocated for rural development initiatives.
PM JANMAN Initiative
The government will launch a saturation drive under the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN).
Education and Employment
The budget allocates ₹1.48 lakh crore for education, employment, and skill development, focusing on employment, skilling, MSMEs, and the middle class.
PM Garib Kalyan Anna Yojana
The PM Garib Kalyan Anna Yojana has been extended for five years, benefiting 80 crore people.
Focus Areas and Future Plans
Sitharaman emphasized the need to focus on the poor, women, youth, and farmers, as highlighted in the interim budget. She stated that the Narendra Modi-led government has a unique opportunity to drive India towards development and prosperity.
Economic Policy Framework
The government will introduce an economic policy framework to usher in next-generation reforms aimed at boosting economic growth.
Conclusion
The Budget 2024 outlines significant measures to support MSMEs, rural development, and other key sectors, aiming to drive economic growth and development across the country.
