The MSME sector in Vadodara is looking to the Union Budget for policy measures that can boost growth and rebuild confidence in the face of growing costs, ageing infrastructure, and fierce international competition.

Industry representatives claim that in order to support small businesses in remaining viable and growing, manufacturing tax relief, increased credit availability, and updated export incentives are crucial.

According to Jalendu Pathak, Secretary of the Vadodara Chambers of Commerce and Industry, long-standing obstacles that keep MSMEs from advancing up the value chain should be addressed in the next budget.

Jalendu Pathak, Secretary, Vadodara Chambers of Commerce and Industry says,

"We have this hope and expectation that the obstacles that hinder in the growth of MSME sector, under this Union Budget, provisions will be put through, which will help them stand in international competition and move forward. For this they need more motivation and along with that, the scope of the CGTS-MSME scheme should also be increased"

Among the sector's main expectations are export incentives and relief from high raw material prices. According to Nipam Desai, Vice President of the Vadodara Chambers of Commerce and Industry, current programmes need to be modified to better assist MSME exporters.

Nipam Desai, Vice President, Vadodara Chambers of Commerce and Industry:

"For MSME sector, we expect that the marketing incentive scheme that is there for exports should be remoulded. The prices of raw materials in MSME industries rises so much that there should be benefits provided to us by removal of taxes in the manufacturing sector.’’

Government initiatives to improve MSME infrastructure are acknowledged, but industry experts claim that implementation is still uneven and requires immediate attention.

The Vadodara Chambers of Commerce and Industry's Senior Vice President, Himanshu Patel, emphasised the significance of successfully implementing and revitalising former industrial zones.

“In the MSME sector, the government is taking serious measures for infrastructure, no doubt about it, but there are some difficulties when it comes to implementation. Whatever policy the government has should be improved and properly implemented — that is our demand. Industrial areas that are about 50 years old should be developed so that existing MSMEs and businesses can survive and grow.”

MSME stakeholders in Vadodara are optimistic that their concerns will result in tangible policy action as Finance Minister Nirmala Sitharaman will present the Union Budget on February 1.