Table of Contents
The budget 2025 is around the corner amidst a looming global tariff war of all sorts. The rupee is depreciating like never before and the stock market is quite overvalued with foreign institutional investors not showing much interest in India. The GDP growth is predicted to be around a modest 6%. Modest because as per most experts, India needs to grow at 12% for 8-10 years to get anywhere near vision of viksit Bharat. The general sense is that the big players are getting bigger and MSMEs and salaried class are struggling to cope up with the rising inflation and compounding effect of over-taxation. Its no secret that for India to grow at 12% more MSME need to transition to large corporations. Surely this budget can do its bit.
Easy access to real estate for startup factories: There is no shortage of engineering graduates with the ambition to set up factories and create employment. A major stumbling block for setting up a factory is the availability of factory land and building with all permissions . The Government must focus on providing plug and play Factory infrastructure with all approvals in place. To make it cost effective the rent payable for such infrastructure by startup factories should be offset against the GST generated by such factories from their output atleast for 2 Years.
Allow low interest Collateral free loans for First Machinery : Another major hindrance is Banking sector’s obsession with collateral. Govt must allow banks to give a loan of upto Rs 50 lakhs for purchase of machinery without any collateral and without previous “3 Year financial statement” requirement.
Take urgent measures to Control inflation in food, education and medical- these areas hurt a worker in factory the maximum. This results in high cost for the factories and makes ultimate cost of production uncompetitive.
The goal should be to help young brilliant people in opening factories. Instead of Ease of Doing business, government should focus on ease of starting business.