- KredX Editorial Team
- 26 Feb 21
- Budget,MSME,Working Capital

In light of the COVID-19 pandemic, the Finance Ministry had launched the Emergency Credit Line Guarantee Scheme (ECLGS) as a part of the Atma Nirbhar package on 12 November 2020 to fillip growth in India’s MSME sector.
Under this scheme, the government proposed Rs. 20,000 crore debt provision and equity infusion worth Rs. 50,000 crore. Moreover, Finance Minister, Nirmala Sitharaman made tweaks to the small-scale enterprise’s definition to benefit a larger percentage of businesses.
Indian MSMEs relied on Union Budget 2021 to bring additional measures for this sector’s revival, especially regarding liquidity crunches faced by a majority of this sector’s components.
Let’s look at some key expectations of India’s MSME sector from this year’s union budget.
Critical Expectations From Union Budget 2021
Here are some key expectations of small and medium-scale organisations from this year’s Union Budget:-
Extension Of Emergency Credit Line Guarantee Scheme
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Extension Of Interest Subvention Scheme
Key Announcements About MSMEs From Budget 2021
The Finance Minister made the following announcements about the MSME segment in India:-
Total Allocation
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Reduction Of Customs Duty
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Withdrawal Of Import Exemptions
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Establishment Of Mega Textile Parks