Budget 2024-25 : Case for a refinancing institution for MSMEs | Shachindra Nath's Budget wish list for MSMEs' success

In an insightful discussion on the MSME sector's expectations from the upcoming Budget 2024-25, Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital, highlighted several critical issues and proposed solutions. He stressed the urgent need for more employment opportunities, particularly in tier-II and tier-III towns, and the creation of an enabling system that supports the prosperity of NBFCs and fintechs. Nath proposed establishing a refinancing institution specifically for MSMEs, recognizing NBFCs in the priority sector, and creating a separate category of NBFCs focused on MSME credit to ensure priority interest rates. Nath also stressed the importance of budgetary allocation for partial credit guarantee schemes and increasing credit guarantee cover limits to expand credit.