Govt must facilitate easier access to low-cost capital for fintechs

Mumbai: The government should prioritize facilitating easier access to low-cost capital for fintechs, enabling them to extend their services beyond urban areas and reach rural customers, with a special emphasis on empowering women, feel experts.

Micro, small, and medium businesses play a pivotal role in propelling local economies forward and fostering local employment opportunities.

Talking to Bizz Buzz, Seema Prem - Co-founder and CEO at FIA Global says, “Simultaneously, it is imperative to shift focus towards enhancing financial resilience in rural areas. The government should actively promote the adoption of investment products such as mutual funds and stocks, thereby empowering rural communities and promoting long-term financial stability.”

With the surge in digital payments, it is imperative for the government to establish a cybercrime committee comprising stakeholders from fintechs, telecom, law enforcement, banks, and other financial institutions, she said.

This multi-stakeholder approach aims to expedite the resolution of cybercrime issues faced by fintechs through coordinated efforts and expertise.

Moreover, the MSME sector eagerly anticipates the Union Budget, with a focus on key provisions crucial for our growth and sustainability. Foremost among our expectations is enhanced access to finance, including easier credit availability and lower interest rates to facilitate business expansion. In Tax reforms we are looking for Section 194R introduced last year April 2023 has made an impact on lower sales turnover to the MSME segment catering to the gifting industry leaving them in vulnerable conditions.

Umesh Singh, Founder & Director, Tara Candles says, “This section should be reformed to boost the MSME gifting industry. Infrastructure development remains a priority, urging increased funding for essential facilities like roads and logistics. We seek government support for technology adoption, innovation, and streamlined regulatory processes to ease operational complexities.”

Skill development initiatives and collaborations with educational institutions are essential to enhance our workforce capabilities. Additionally, we advocate for export promotion, cluster development, and risk mitigation measures to boost competitiveness and resilience.

According to Singh, “Our commitment to environmentally friendly practices also prompts a call for incentives for sustainable operations. As economic conditions evolve, we emphasize the dynamic nature of our expectations, underlining the importance of a budget that addresses the ever-changing needs of the MSME sector.”

Business associations and industry groups continue to play a crucial role in articulating and advocating for our specific needs during budget discussions.