Union budget – Sustainable development of MSME

Abstract

This study aims to attempt the role of Micro, Small and Medium Enterprises (MSMEs) in the prospect of the Indian economy. MSMEs play a vital role in the growth of the economy. By 2030, the MSME sector will be anticipated to contribute 40% of the GDP. The union budget related to the MSME sector from 2019-2025 is analysed in the study. The purpose of studying the government’s credit facilities, export-related measures, skill development and infrastructure development by the government of India. The government has increased budget allocation to the Ministry of MSME by over 260% from 2018. 2021-22 budget allocation of 15,700 crores to the MSME sector, which is twice the amount from the 2020-21 budget. India has the highest youth population in the world. Hence, the government taking many measures to improve MSME and generate employment generation. Under Pradhan Mantri Kaushal Vikas Yojana 4.0 launched advanced courses like robotics, AI, etc. in the year 2023-24. The government took action to reduce imports by increasing customs duty, which will boost the market for domestic products and play a vital role in fostering the MSME sector.