MSMEs get a helping hand in Budget but challenges in financing remain

According to CRISIL Ratings' bi-annual 'MSME Report' (June 2023), the debt need of the sector is more than Rs 100 trillion. Of this, 70% is for working capital requirements alone

“The universe of companies on platforms like ours will go up. Now, as far bank funding is concerned, we will have to wait for the central bank’s guidelines,” says 

Ketan Gaikwad, managing director (MD) and chief executive officer (CEO), Receivables Exchange of India (RXIL). It is his way of putting it across that measures in the Union Budget for micro, small, and medium enterprises (MSMEs) have many moving parts.

Consider the move to lower the turnover threshold for buyers to Rs 250 crore from Rs 500 crore on the Trade Receivables Discounting System (TReDS), an invoice discounting