Mr. Shobhit Singh, Managing Director & CEO, Stone Sapphire India Pvt Ltd:

“As we look forward to the next Union Budget, we urge the government to focus on both sustainability and affordability for MSMEs, which are the future of India’s economy and sustainable growth. While the government has taken commendable steps in this direction, such as the PLI scheme for toys and the NAPT, much more needs to be done in terms of financial reforms to encourage MSMEs to become sustainable and innovative.

With India’s commitment to achieving net-zero emissions by 2070, MSMEs, especially in the toy and sports industries, need to be empowered to adopt green practices. This would mean increasing access to financial incentives and government-backed programs such as RAMP, TEQUP, and ZED certifications, which enable MSMEs to adopt green technologies and reduce their carbon footprint.

However, MSMEs still struggle to access timely and affordable credit with a mere 14% credit penetration compared to the global average. The government should simplify the loan application process and consider alternative financing options like government-backed P2P lending platforms and credit insurance schemes that will bridge this gap. A compliance framework simplified and tailored to the needs of MSMEs will also ease the regulatory burden on businesses, helping them focus on growth and sustainability.

Present-day consumers are very conscious about their environment and so MSMEs should take advantage of this and support the sustainability movement that is trending globally; thereby not only marketing themselves better but also securing some loyal customers as well as overseas partnerships. Long-term growth is only achievable through the government, which needs to offer the necessary financial support and policy measures that can enable MSMEs to succeed sustainably in the competitive international market.”