Budget 2024 estimate under MSME RAMP scheme, PM Vishwakarma, Khadi Gramodyog totals Rs 7,000+ Cr
Interim Budget 2024 aims to foster MSME growth, emphasising timely finances, relevant technologies, and adequate training to enhance their global competitiveness.
While the Interim Budget—presented by Finance Minister Nirmala Sitharaman—didn't adhere much to the expectations from the micro, small, and medium enterprise (MSME) ecosystem, the estimates set for the year 2024-25 have plans to facilitate their growth.
During the announcement, the minister said, “It is an important policy priority for our government to ensure timely and adequate finances, relevant technologies, and appropriate training for the MSME to grow and also compete globally.”
Orienting the regulatory environment to facilitate their growth will be an important element of this policy mix, she added.
Revised budget outlay for MSMEs, other major schemes
According to the Budget document, the government has increased the Budget estimate for Raising and Accelerating MSME Performance (RAMP scheme) to Rs 1,170 crore for FY 2024-25 from the revised estimate of Rs 1,000 crore in FY 23-24.
The RAMP scheme was launched in 2022 to improve access of MSMEs to market and credit, technology upgradation, and addressing issues of delayed payments and greening of MSMEs. The increase in the corpus is anticipated to increase the MSME performance.
For Khadi Gramodyog Vikas Yojana and PM Vishwakarma schemes, the government increased the corpus from Rs 810 crore last year to Rs 1,037 crore for FY25, and from Rs 990 crore to Rs 4,824, respectively.
FM said that PM Mudra Yojana has sanctioned 43 crore loans aggregating to Rs 22.5 lakh crore for the entrepreneurial aspirations of youth. Besides that, Fund of Funds, Startup India, and Startup Credit Guarantee schemes are assisting youth. “They are also becoming rozgar data,” she added.
However, the Guarantee Emergency Credit Line (GECL) facility to eligible MSME borrowers is reduced to Rs 10,163 crore for FY 2024-25 from the revised estimate of Rs 14,000 crore in FY 2023-24.
The investment estimate in PSU/JV/SPV, etc., has seen a decline from the revised estimate of last fiscal year, i.e., from Rs 32,800 to Rs Rs 31,107 crore.
FM shares success of Skill India Mission: 1.4 Cr youth trained, 54 lakh upskilled
PLI estimates
Ahead of Budget 2024, MSMEs were expecting developments in the Production-Linked Incentives (PLI) scheme. According to the announcement today, the PLI Scheme for the pharmaceutical industry has seen an increased corpus of Rs 2,143 crore. The PLI allotment for the Ministry of Electronics, Information and Technology (MeitY) also got bigger from Rs 4,560 crore to Rs 6,200 crore.
The PLI for automobiles and auto components increased 7X to Rs 3,500 crore from Rs 484 crore in FY 23-24.
Other announcements for the manufacturing industry included the Promotion of Electronics and IT HW Manufacturing (MSIPS, EDF, and manufacturing clusters), which was increased to Rs 750 crore, and the Budget estimate for Prime Minister Formalisation of Micro Food Processing Enterprises scheme (PM FME) has been put as Rs 880 crore.
Edited by Suman Singh