SMEs And Startups Are Still Unclear About GST

India is expected to become a US$ 5 trillion economy by 2025 and to achieve this, it needs to strengthen the SMEs as they form the backbone of the nation’s growth.

- Baishakhi Dutta

The MSME sector, which contributes to 40 per cent of Indian exports, is about to grow further with the recent spate of reforms. A recent Credit Suisse report states that the SME loan market is estimated to grow to US$ 3,020 billion over the next decade. This brings good tidings to the existing and seedling SMEs in India. RBI reforms like guidelines on the purchase and sale of priority sector lending certificates (PSLC) will help to promote efficient lending practices for the SME sector.

The upcoming government plan of rating MSMEs on 50 parameters will enable the sector to improve the quality of manufacturing and gain a foothold in the international market. Other government led initiatives, such as setting up of the Bankruptcy Bill, will enhance the ease of doing business for SMEs. All these reforms, paired with the government pushing to pass the GST bill this monsoon session of Parliament, will ensure a strong backing to the SMEs in India.