A Study on Impact of Union Budget 2021-22 on MSMEs in India

Small industries play vital role in economic development of nation by providing employment opportunities, revenue generation, diminishing poverty, rural development, reducing regional imbalances etc. Therefore, the Government give emphasis to Industrialization for rapid economic development of India. However, Industrialization is majorly supported by Micro, Small and Medium enterprises (MSMEs). MSME sector has the potential to emerge as a backbone for Indian economy and act as an engine for all overgrowth. Both Central and State government draft their important development policies by giving more deliberation to this sector. Budget echoes the government decision on taxation, borrowing, fiscal measures, resource allocation, income & wealth distribution, economic stabilization& economic growth. Union budget is a major policy announcement made by the government each year to bring in the waves of changes in the economy as deemed necessary by the economic conditions of a country. It is the annual financial statement of estimated receipts and estimated expenditure of the government for a year starting from 1st April of present year to 31st march of next year. Here is an attempt to showcase and analyze the effect of budget 2021 announcement on MSMEs in India.