The nation as a whole is on a massive drive to become cashless and the government is trying to promote cashless transactions as a weapon against corruption. Though it is yet to be decided whether this drive would be completely successful, a cashless economy holds a lot of hope for the MSME segment. Let us look into how cashless transactions will help in MSME business. For one, going cashless will help entrepreneurs keep their monetary dealings transparent and thereby help them to get low interest business loans. It would also help small businesses to avail loans easily. The load of paperwork to get a bank loan has diminished and it is a matter of days to get loans sanctioned, thanks to NBFCs. Moreover, with the introduction of several pro- MSME government policies, business finance has become even easier this year. Several non-banking organizations are also collaborating with banks or financial organizations to extend help to the small or medium business ventures. SMEs can also procure hassle free funds from online lending companies to build their business.
Another marked change visible in 2017 is that the competiveness of the manufacturing industry is increasing rapidly and it is amply visible in the big Indian cities like Pune, Kochi, Chennai, Delhi-NCR, Kolkata, Mumbai, Chandigarh, Bengaluru, Hyderabad, and Ahmadabad. The service tax structure of the country has also been reviewed and the new structure is also shaped in favour of SMEs.
SMEs pertaining to electronic goods, building materials or automobile parts will largely benefit as the central excise duty has been reduced significantly. Taxation on purchase as well as advertising will be lowered in the days to come. 2017 is projected as a year that will make it possible for SME owners to enjoy skilled workers, better energy usage and cost competitiveness, thereby enhancing the success ratio in their business.