Some New Financial Innovations Such As Treds For Exporters Are Expected To Go Live In 2024-25
FinTech BizNews Service
Mumbai, February 1, 2024: The leading Fintech voices have welcomed the Union Budget 2024, presented by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament in New Delhi today.
Gaurav Jalan, Founder & CEO, mPokket: “The emphasis on continued growth of digital public infrastructure is most welcome. The government’s consistent push to capitalize on India’s momentum as an attractive investment destination bodes well for potential FDI inflows. The intention to create a conducive regulatory environment for MSMEs through appropriate financing, technologies and training will also provide a robust fillip to small enterprises and start-ups. Besides farmers, women and the poor, the focus on youth via the training of 114 million youth and upskilling and reskilling of 5.4 million youngsters, as well as the establishment of 3,000 new ITIs, will help in transforming India into a catchment area for young talent. With 430 million loans worth Rs22.5 lakh crore sanctioned by the PM Mudra Yojana to support the entrepreneurial aspirations of the youth, it will boost both entrepreneurial and employment opportunities. Additional schemes such as the Fund of Funds and Start-up Credit Guarantee will also assist the youth and start-ups throughout India.”
Sundeep Mohindra, Promoter & Managing Director, M1xchange, a leading TReDS platform in India that facilitates working capital solutions for MSMEs through analytics-based invoice discounting: “There is an overall boost to the manufacturing ecosystem with the outlay for infrastructure being 3.4% to the GDP. This will have a ripple effect on the entire value chain of manufacturing, a large part of which is led by the MSMEs. To add to this the Interim Budget 2024 prioritizes timely finances, tech advancement, and skill development for MSMEs. With strong support coming from the government, we are optimistic there will be a massive drive within the MSMEs ecosystem to formalize and thereby have access to formal credit channels to scale their business.
Further, with the positive acknowledgment within the industry regarding the benefits of GST and collections surging to ₹1.72 lakh crore in January 2024, we are certain that GST based analytics to credit decisioning will see a massive adoption in India in the coming months. The finance minister has also acknowledged the role GIFT IFSC has played in creating a robust gateway for financial services for the economy. This is a great boost to ongoing projects underway at GIFT IFSC and we expect some new financial innovations such as TReDS for exporters to come to go live in 2024-25,”
Madhusudan Ekambaram, Co-founder and CEO of KreditBee: “I applaud the government's steadfast commitment to fostering comprehensive and inclusive development. Initiatives such as PM Mudra Yojana, Fund of Funds, Startup India, and Startup Credit Guarantee Schemes are effectively nurturing the entrepreneurial spirit nationwide. It is truly inspiring to witness a visionary approach that extends beyond mere economic growth, with a goal to transform India into a Viksit Bharat by 2047. The proposed measures, including tax reductions, specialized support for developing industries, and augmented infrastructure spending in the forthcoming Budget 2024, are encouraging signs for the future, reflecting a collective endeavor towards sustainability, growth, and innovation within India's dynamic startup ecosystem.
The reinforcement of the financial sector has significantly enhanced the efficiency of savings, credit, and investments. Ensuring timely and ample financial support, leveraging relevant technologies, and providing appropriate training for Micro, Small, and Medium Enterprises (MSMEs) are pivotal policy priorities for the government. This strategy aims not only to foster their growth but also to enhance their global competitiveness. Aligning the regulatory environment to facilitate the expansion of MSMEs will be a crucial aspect of this comprehensive policy framework."
Amit Khatri, Co-Founder, Noise: “The focus on boosting employability through training and skill development, along with the significant support to foster the entrepreneurial spirit of Indian youth through 43 crore loans amounting to Rs. 22.5 lakh, is indeed a commendable step towards pushing India’s growth at a global stage. These reforms encourage us to work towards India’s vision to become a developed nation by 2047 through enhanced capability and empowerment. Being a homegrown brand, we believe that initiatives like PM Mudra Yojana & Start Up India will play a crucial role in catalyzing the growth of the startup ecosystem in India and eventually further strengthen the 'Make in India' efforts. We appreciate the economic policies adopted to foster growth, improve productivity, increase opportunity, and fulfill aspirations through strategic technological advancements. Driven by the vision of Vikasit and Aatmanirbhar Bharat, we look forward to actively participating in the nation's journey towards global prominence and innovation leadership.”
