As we know that Budget 2019 has been put out already, the Indian Government is attempting to uplift MSMEs (small and medium scale companies).This is quite desirable for concrete future development plans. The MSMEs sector is trying newer initiatives after the budget 2019 was declared. From promoting women-led businesses to running rural digital capabilities, the budget has largely focused on vital small businesses.
Major Highlights of Budget 2019
Budget 2019 guarantees service to different sectors of the economy but keeps unchanged is the focus on the Indian economy. The Indian government has worked on the following pointers for the small businesses to take full charge and promote them good. Below are the 7 points to be noted:
1. 2% interim subsidy on 1 crore loan amount-
As per the classified budget, small businesses with GST registrations are eligible for 2% interest subsidy on new or additional loans. The requirement for a loan will be checked at the time of GST filing or registration.
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2. Tentative taxation limit raised to 2 crores-
All small businesses will now be able to avail an increased tentative limit of 2 crores (raised from a whopping 1 crore). The budget also supported professionals with at a threshold of Rs.50 Lacs.
3. One can sell products on Government e-marketplace (popularly known as GEM)-
This has further boosted economic growth. Precisely, transactions of over 17,500 crores will take place with savings of about 25% or more for small businesses and traders.
4. National Center of AI supports startups & new ventures-
A new center was founded by Piyush Goyal with advanced AI in order to push technology in businesses and trading set-ups. 9 major concerns have been identified and confirmed. Development plans will start really soon.
5. Startups & Digital India-
Make in India is hovering around with a dream to live comfortably and aim at 1 lac digital villages in a stint of 5 years. The idea is to set expectations and work towards growth for better growth and future, especially for rural setups. Many duties have been dropped to encourage more business and trading work. This will bring substantial prosperity to small businesses.
6. Businesses led by women to obtain huge investments-
A gigantic increase of 174 crores will be allocated to the businesses run by women in particular. The government has provided a whopping budget of 1330 crores to revive/boost women-led startups in the year 2019.
7. Sourcing from small businesses scaled up by 25%-
To provide strength to small and medium scale businesses, the requirement the government gives out has been increased by 25%. Of this, women-led businesses to contribute at least 3%.
We are hoping to see many aspiring entrepreneurs and promising businesses to flourish in India. India is looked at as the largest startups zone!