Budget Expectations: Tech centers should be expanded to make micro enterprises digital, demand for MSME sector in the upcoming budget

Budget 2024 Expectations: The upcoming budget should expand the existing 14 tech centres to help underprivileged micro enterprises adopt digital devices and e-commerce. It should also expand the reach of ONDC (Open Network for Digital Commerce) to micro units in small towns and villages so that they can compete without high fees or commissions and handle complex partnerships with private e-commerce companies. Lakshmi Venkataraman Venkatesan, founder and managing trustee of Bhartiya Yuva Shakti Trust, said that about 98 per cent of India’s MSME sector comprises micro enterprises, which hold immense potential in the digital age.

Government support to address digital literacy, financial assistance (subsidies for technology adoption) and development of basic infrastructure (better internet connectivity) is needed to empower micro enterprises. Streamlining regulations and promoting marketing assistance (such as business enablement and marketing plans) can further empower micro enterprises. Lakshmi Venkataraman Venkatesan says that the Open Network for Digital Commerce (ONDC) makes access more democratised, helping micro-businesses reach a wider customer base. However, limited digital literacy, initial investments in technology and marketing can be a barrier. The rise of rapid commerce is a significant challenge for traditional stores run by micro enterprises.

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According to the Ministry of Labour and Employment, 8 crore jobs have been created from 2017-18 to 2021-22, while over 6.2 crore subscribers joined EPFO ​​between September 2017 and March 2024. Online marketplaces, from established giants to hyper-fast quick commerce, are witnessing an unprecedented growth of 77 per cent (RedSeer Report).