Union Budget 2024 | 'Allocate funding for upskilling and reskilling in automation, AI and data analytics': Mukul Goyal, Co-Founder Stratefix Consulting

According to the National Skill Development Corporation (NSDC), only 10% of Indian workers receive formal training compared to 60-90% in wealthy nations.

The Union Budget is set to be presented by the Finance Minister Nirmala Sitharaman on July 23.

Co-Founder of Stratefix Consulting, Mukul Goyal, said, "We anticipate that the Union Budget 2024 will introduce significant initiatives to assist workforce development and job creation for MSMEs in India. One crucial area is improved skill development. The budget should allocate significant funding for upskilling and reskilling programs, particularly in automation, artificial intelligence, and data analytics. Providing future-ready skills will enhance employability and foster creativity in MSME workforces.

According to the National Skill Development Corporation (NSDC), only 10 per cent of Indian workers receive formal training compared to 60-90 per cent in wealthy nations. Closing this gap should be a primary concern. The government should also offer tax breaks and subsidies to MSMEs investing in staff training and development to promote ongoing learning and adaptability.

Obtaining timely and reasonably priced financing has been a persistent issue for India's MSME sector. We hope the budget will further support programs like the Emergency Credit Line Guarantee Scheme (ECLGS) and the Partial Credit Guarantee Scheme (PCGS) to improve credit availability. The Reserve Bank of India has estimated a credit gap of Rs 20 to Rs 25 trillion in the MSME sector, highlighting the need for better financing accessibility."

"To improve the regulatory environment for MSMEs, it is crucial to implement policies that simplify compliance requirements, reduce paperwork, and expedite approval processes. This would make doing business easier and allow businesses to concentrate on their core competencies. According to the World Bank's Ease of Doing Business report, India is ranked 63rd globally, underscoring the need for further changes.

Equally important is strong support for MSMEs' digital transformation. We expect the budget to include specific funding for initiatives that encourage the adoption of cutting-edge technologies. Providing MSMEs with the tools they need to embrace digitalization will help them reach their full potential and become more competitive internationally," he added.

Finance Minister Nirmala Sitharaman will present the Union Budget on July 23. News has emerged that Prime Minister Narendra Modi might have a more troubled Budget this time, to accommodate the wishes of his alliance partners JD(U) chief Nitish Kumar and TDP supremo Chandrababu Naidu. However, it is more likely that the Budget will be a feel-good one, coming on the back of the Rs 2.11 lakh crore record dividend to the union government from the RBI.