Inputs on Budget from Mr. Rohit Arora, CEO and Co0founder, Biz2Credit and Biz2X

 

Rohit Arora, CEO and Co-founder, Biz2credit and Biz2X

We welcome the initiatives announced by the Government in the Budget 2023-24, however there still remains certain challenges that should be addressed on priority. For instance, the Government has today provided extra corpus to MSMEs, however the credit disbursed to MSMEs in India through this scheme is only a meagre 7 to 8 percent, compared to that in the United States, which is a whopping 30 percent. Also, the CGTMSE scheme is currently being used by large banks while the smaller NBFCs do not get adequate access. This has impacted the securitization market for CGTMSE loans.

Furthermore, in the US for instance, MSME credit assessment is a streamlined process as all data relating to liens, lawsuits and judgements, other legal information lies with the Secretary of State. In the budget, though the Government has proposed a national centralised registry for data or information, it needs to be modelled in a way that is existing in the US.

Also, considering that MSMEs has suffered the most during the pandemic, the refunding of 95 percent to MSMEs is a welcome move. However, going forward, the Government should put it in line with force majure clause as some of the MSMEs had beseeched that during the pandemic.