The Udaipur Chamber of Commerce and Industry (UCCI) has urged the government to strengthen policy support for Micro, Small and Medium Enterprises (MSMEs) in the upcoming Union Budget, citing the need for improved facilities, modernisation incentives, and global competitiveness.
On January 30, the UCCI chief stated that the MSME sector requires focused and sustained policy interventions to scale operations, adopt modern technology, and effectively compete in both domestic and international markets.
MSMEs Need Scale, Not Just Survival Support
According to UCCI, while previous policy measures have helped MSMEs survive economic disruptions, the next phase of growth requires scaling-focused schemes rather than short-term relief. The chamber emphasised that MSMEs must be enabled to expand capacity, improve productivity, and integrate with global value chains.
Industry representatives highlighted that rising input costs, compliance burdens, and limited access to long-term finance continue to constrain MSME growth, particularly for export-oriented and manufacturing enterprises.
Call for Modernisation and Technology Adoption
UCCI stressed the importance of Budget provisions that encourage technology upgradation, digitisation, and automation among MSMEs. Modern manufacturing techniques, energy-efficient processes, and digital tools are increasingly necessary for small businesses to remain competitive in global markets.
The chamber suggested enhanced capital subsidies, technology-linked incentives, and easier access to modern machinery to help MSMEs move up the value chain and improve quality standards.
Global Competitiveness and Export Support
To help MSMEs compete globally, UCCI called for stronger export-linked incentives, improved access to affordable export finance, and simplified procedures. MSMEs, which contribute significantly to Bharat’s exports, often face challenges related to logistics costs, compliance complexity, and financing gaps.
UCCI noted that targeted policy support in the Union Budget could help MSMEs expand their export footprint, diversify markets, and reduce dependence on a limited number of buyers.
Employment and Economic Growth Link
The chamber also underlined the role of MSMEs as a major employment generator. Strengthening MSME schemes in the Budget would not only support entrepreneurship but also create large-scale job opportunities, particularly for youth and semi-skilled workers.
According to UCCI, MSME-led growth is critical for sustaining economic momentum, promoting regional development, and ensuring inclusive growth across Bharat.
Expectations from the Union Budget
UCCI expects the upcoming Union Budget to focus on:
- Enhanced MSME credit and equity support
- Incentives for technology upgradation and modernisation
- Simplified compliance and regulatory processes
- Export-focused support for MSMEs
- Policies aimed at scaling and global integration
đŸ”‘ Key Takeaways
- UCCI seeks stronger MSME schemes in the Union Budget
- Focus on scaling, modernisation, and global competitiveness
- MSMEs need long-term growth support, not just relief measures
- Strong MSME policies critical for jobs and economic growth
