INDIA: The Union Budget for the banking sector includes various initiatives and schemes aimed at promoting economic growth and financial stability. The budget emphasizes low and stable inflation, with a focus on employment, skilling, and opportunities for youth. Additionally, there are provisions for the agriculture and allied sector, rural development, and women-led development. The budget also includes measures to enhance Mudra loans, provide internship opportunities for youth, address housing needs for urban poor and middle-class families, and improve connectivity in rural areas. Tax relief measures have been introduced for salaried individuals, pensioners, and corporate entities. Furthermore, there are reductions in corporate tax rates for foreign companies and TDS rates on certain payments. Overall, the budget aims to boost investments, support startups, and benefit lower and middle-income classes.
Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India.
“The measures announced in the Union Budget underscore the government’s commitment to empowering MSMEs, the backbone of our economy. The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades.
Further, lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the sector.“
