The Union budget for 2020-21 could see higher fund allocation for small and medium businesses currently battling a demand slowdown and liquidity crunch.
The micro, small and medium enterprises (MSME) ministry has sought a 71% increase over and above will continue to drive localisation, campus hiring: Wiproe the budgetary allocation made last year, MSME minister Nitin Gadkari said.
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“We have sought ₹12,000 crore budgetary allocation for MSMEs in the upcoming Union Budget,” the MSME minister told Mint. The allocation for the sector in the current financial year is ₹7,011 crore.
Gadkari’s statement comes at an important time. MSMEs are considered key drivers of job creation and economic growth in developing nations—a significant constituency as India attempts to revive economic growth that hit a six-year low of 4.5% in the July-September quarter.