Press Release

Smt. Nirmala Sitharaman, The Finance Minister today presented first Budget of Modi 3.0 Government for the year 2024-25 in the Parliament. Laghu Udyog Bharati would like to thank and compliment the Finance Minister for presenting a futuristic Budget keeping in view the Amrit Kaal of next 25 years and laying emphasis on Viksit Bharat with huge spending to encourage and sustain infrastructural growth and providing crucial support for employment, skilling and manufacturing which will give a big boost to Micro and Small Industries..

Key Highlights of the Budget 2024-25 are as under:

Employment and Skilling:

• Three Schemes for Employment Linked Incentives based on enrolment in EPFO will
• encourage employment generation in manufacturing. First timer will receive one-month wages upon entering work force.
• Employer and employee both will be provided incentives as per their EPFO contribution for the first four years.
• Employers will be reimbursed upto Rs. 3000 per month for two years towards EPFO contribution.
• 1,000 ITIs to be upgraded in hub & spoke arrangements in 5 years.
• 1 crore youth to be skilled by India's top companies in five years through internship program. 12-month Prime Minister's Internship with monthly allowance of 25,000.
• Setting up of working women's hostels and creches in collaboration with industry.
• Model Skill Loan Scheme to be revised to facilitate loans up to & 27.5 lakh with a guarantee
• from a government-promoted fund: expected to help 25,000 students every year.

Banking:

• A Credit Guarantee Scheme for MSME in the manufacturing sector for purchasing machinery and equipments without collateral or third-party guarantee.
• Public Sector banks to develop in house assessment capability for evaluating MSMEs instead of outside agency. This will help enhanced Credit eligibility assessment and faster sanctioning of loan etc.
• Lower turnover threshold for onboarding on the TReDS platform 500 crore to 250 crores.. Credit Guarantee Scheme on pooling of credit risk of MSME as separately constituted- a self-financing guarantee fund will provide to each applicant guarantee covers up to Rs 100 crore, while the borrower will have to provide an upfront guarantee fee and an annual. guarantee fee on the reducing loan balance.
• SIDBI will setup new branches in MSME Clusters to provide direct credit to small businesses within three years.
• Financial support to establish fifty irradiation units and NABL accredited food quality and safety testing labs.
• The limit of Mudra loan under the Tarun category is increased from 10 lakh to 20 lakh. A new mechanism will facilitate the continuation of bank credit to MSMEs during stress
• period, supported by guarantee from a Government promoted fund.
• More than 100 branches Indian Post Payment Bank will be setup in the North-East Region.

Capacity Building:

• Investment-ready "plug and play" industrial parks to be developed in or near 100 cities. 
• 12 industrial parks sanctioned under National Industrial Corridor Development Programme.

Demand Creation:

• Capex of Rs. 11.11 lakh crore has been proposed for development of infrastructure. Additionally, investment through rural development, tourism and industrial corridors, R & D and technology centres will create huge demand all around and bring advantage to MSMES.

Reforms:

• 10,000 bio research centres will be established.
• To ensure self-sufficiency in pulses and oil seeds, 6 crore farmers land will be covered under
• Digital Public Infrastructure and Digital Crop Survey in 400 districts will be undertaken. Vegetable production and supply chain, large clusters to be developed closer to consumption
• centres.
• Shram Suvidha and Samadhan Portal will be revamped to ensure easy compliance. Economic Policy reform approach to improve productivity and facilitating marketing will be
• brought. With the Aim to resolve direct tax disputes and to reduce litigation costs, Government to bring direct tax Vivad Se Vishwas Scheme 2024.
• More emphasis to promote exports of Marine products like fish and shrimp etc. will be given. The government will work with the states to initiate land-related reforms, rural and urban land-related actions.

We certainly believe that the above proposals will have comprehensive impact on skill development, employment generation leading to increased manufacturing activities bringing all round progress.