
BHUBANESWAR: The focus given to MSMEs and startups in the Union Budget, enhancing financial support for these sectors will give a fresh impetus to their growth in Odisha, entrepreneurs and industry experts said.
CII Odisha State Council chairman Pradipta Mohanty said the priority given to MSME sector and exports will go a long way in encouraging industrial investment and accelerate economic development of both the country and the state.
“The Centre has recognised MSME sector, that employs more than 7.5 crore people and is the top most job creator, as the second engine of growth. The focus on MSMEs in the budget from classification limit raise to investment support will hugely benefit the small industry sector in Odisha,” said Utkal Chanmber of Commerce and Industry (UCCI) president Prabodh Mohanty.
He said the government has also made credit access easier for the MSMEs and startups by enhancing the credit limit for MSMEs from Rs 5 crore to Rs 10 crore and startups from Rs 10 crore to Rs 20 crore, without collateral and has also focused on MSME market linkage and product export. “Odisha will be hugely benefited from these moves paving way for more financial support to state’s MSME units and startups,” he said.
Odisha Industries Association (OIA) chairman Abani Kanungo said increase in Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) coverage up to Rs 10 crore will encourage budding entrepreneurs and startups of the state, while term loan up to Rs 2 crore for SC, ST and women startup entrepreneurs will make Vikist Odisha and Viksit Bharat a reality.
“Even though the credit guarantee fee has not been of much help for Odisha MSMEs in the past, we strongly believe that this will help in the future,” said Odisha Assembly of Small and Medium Enterprises (OASME) secretary general Satwik Swain. Since Odisha has no toy manufacturing unit so far, Swain said, he is hopeful that the new policies in this year’s budget will support the state venture into the sector.