MSMEs’ situation improving, Budget 2021 to give a boost: Udaan’s Sujeet Kumar

Speaking to YourStory after Finance Minister Nirmala Sitharaman presented the budget, Kumar said the government’s intention to revive MSMEs “very positive”.

“The government has taken several bold steps for MSMEs,” said Kumar, who co-founded the business-to-business marketplace Udaan in 2016.

Kumar welcomed the government’s move last year to offer more credit MSMEs and the budget proposals that are aimed at reducing costs for MSMEs and making them more competitive.

In the budget, Sitharaman proposed to more than double the allocation to the MSME sector to Rs 15,700 crore.

“MSMEs and other user industries have been severely hit by a recent sharp rise in iron and steel prices,” she said. “Therefore, we are reducing customs duty uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steels.”

She also increased the duty from 10% to 15% on steel screws and plastic builder wares. “We are rationalizing exemption on import of duty-free items as an incentive to exporters of garments, leather, and handicraft items. We are withdrawing exemption on imports of certain kinds of leathers as they are domestically produced in good quantity and quality, mostly by MSMEs,” she said.

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For YourStory's multimedia coverage of Budget 2021, visit YourStory's Budget 2021 page or budget.yourstory.com.