{"id":6974,"date":"2021-03-01T05:52:22","date_gmt":"2021-03-01T05:52:22","guid":{"rendered":"https:\/\/kredx.com\/blog\/?p=6974"},"modified":"2023-10-26T05:51:46","modified_gmt":"2023-10-26T05:51:46","slug":"union-budget-2021-key-announcements-for-msme-sector","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/union-budget-2021-key-announcements-for-msme-sector\/","title":{"rendered":"Union Budget 2021: Key Announcements For MSME Sector"},"content":{"rendered":"

Following the economic slowdown in 2020, the COVID-hit MSME sector had pinned its hope on Union <\/a><\/span>Budget 2021<\/a>,<\/a> seeking ground-breaking reforms that would facilitate a smooth revival. And, the announcements made that day did not fail them.\u00a0<\/span><\/p>\n

In India\u2019s first-ever digital-only Union Budget, Finance Minister, Nirmala Sitharaman made some key proposals concerning the micro, small, and medium enterprises.<\/span><\/p>\n

Union Budget 2021 \u2013 Announcements About The MSME Sector<\/b><\/h2>\n

Here is a rundown of some key highlights from Union <\/span>Budget 2021<\/b> concerning India\u2019s MSME sector:<\/span><\/p>\n

Budget Allocation<\/b><\/h3>\n

The Budget estimates for the MSME sector in FY 20-21 stood at Rs. 7,572 crore. However, for this fiscal year, the Finance Ministry allocated Rs. 15,700 crore, which is more than double the previous year\u2019s allotment.\u00a0<\/span><\/p>\n

A significant portion of this allocation for FY 21 \u2013 22 has been made keeping in mind the Emergency Credit Line Guarantee Scheme (ECLGS).<\/span><\/p>\n

Resolution Of Insolvency\u00a0<\/b><\/h3>\n

The National Company Law Tribunal (NCLT) infrastructure has not been greatly successful in providing effective solutions; insolvency cases are still pending. To combat this issue, the Finance Minister announced the following measures:<\/span><\/p>\n