MSMEs expectations from Budget 2023, and other top SMB stories of the week
The growth engine of India’s economy, MSMEs contribute about 30% of the country’s GDP. They’re also the force behind 48% of exports, 95% of the country’s industrial units, and 40% employment of India’s workforce.
And, the MSME sector has high expectations from the Union Budget 2023. As Finance Minister Nirmala Sitharaman is set to announce the Budget on February 1, SMBStory spoke to different association bodies to understand the recommendations they have given to the ministry that would benefit the sector at large.
Here’s what they want:
- Revisions in MSME Act 2006
- Tax relaxation from capital gains
- Shift to online loan applications
- Cut out balance sheet-based funding
- Expand women's entrepreneurship policy.
Other top picks of the week:
Launched in 2010, homegrown furniture brand seems on track to becoming one of India’s leading furniture brands.
Despite operating from Bengaluru—India’s startup capital that ranked fifth in the world for tech VC investments in 2022—the company has chosen to remain bootstrapped. This is, despite, competing with newer brands like Pepperfry, Urban Ladder, Wakefit, etc., which have grown quicker and faster.
Royal Oak could have taken the external funding route a long time ago, but founder Vijai Subramaniam says the biggest stumbling block was “the way startups operate”.
“I have risen from poverty. I know the struggle and effort that go into building a business. Startups focus on valuation, but I operate my business by sticking to core values,” Vijai tells SMBStory.
He says that startups tend to do business by discounting and selling, but Royal Oak doesn’t have that approach. Instead, the founder says their product offerings and understanding of the customer's demand help them stand out. “We don’t lure customers with discounted prices; we give them what they demand, “ he says.
But Vijai’s confidence and success didn’t come overnight. A struggle of almost 20 years helped him build a business that reported a Rs 401 crore turnover as of March 2022.
TradeIndia (TI) Lending, a digital lending service by B2B marketplace, has disbursed loans worth Rs 50 crore to MSMEs in six months of its inception.
The company aims to reach Rs 250 crore in the next financial year, said Aditya Shankar, Vertical Head, TI Lending. TI Lending was launched in July last year to address the challenges faced by MSMEs in obtaining business loans.
It has collaborated with many lending platforms such as Mintifi, ICICI Bank, Indifi, Flexiloans, IIFL Finance, Electronica Finance Limited, and MoneyWide to offer loan credits. It also offers instant loans up to Rs 5 lakh within 24 hours of application.
Edited by Suman Singh