Commenting on the budget,Mr. Arroon Gawalli, Founder and CEO of Kreditnotes and MindBrreeze, “We welcome the Finance Minister’s take on the Credit Guarantee Scheme for MSMEs. Supporting the growth of the MSMEs, the revamped schemes will be infused with Rs. 9000 Cr. to protect them from the burden of rising interest rates.
Post pandemic, companies especially startups faced misfortunes in running their operations effectively. Thanks to the 2023 budget MSMEs will get some tax benefits. It will carry the losses from 7 years of incorporation to 10 years. Facing the budget constraints to establish a company by the startups and MSMEs earlier, the present budget aims to reduce the cost of credit by 1%. This may prove to be a boon for all the startups.
Allocation of 95% of the forfeited amount for contract failure at the time of COVID -19 will further encourage the MSMEs to take bigger steps. Such initiatives will reduce the roadblocks for all the existing and future MSMEs and would help them attain their future endeavors.”