Union Budget 2024: MSMEs, Cancer Drugs, Housing Schemes Get Boost

Chennai, Jul 23 (PTI) Reduction in duty on import of certain medical equipment and cancer drugs, credit guarantee schemes for MSMEs and doubling of MUDRA loans, as well as lower stamp duty for women purchasing property are among the features of Union Budget 2024 that industry leaders here say would propel the government's 'Viksit Bharat' vision.
The Union Budget will give a fillip to economic growth and entrepreneurs across India as it addresses the diverse needs of the country, these industry experts said on Tuesday.
"A notable highlight for the medical device industry is the reduction in duty on the import of components for X-ray equipment until domestic production capabilities are established," G S K Velu, Chairman and Managing Director, Neuberg Diagnostics, Maxivision Eye Hospitals Trivitron Healthcare said.

He also pointed out that the budget highlighted the fiscal incentives for research and development (R&D) and capital expenditure (CAPEX) in the medical devices sector. These measures will encourage innovation, enhance production capabilities and propel India towards self-reliance in medical technology, he said.

According to Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank, the focus in the budget on the MSME sector will immensely help the growing number of entrepreneurs in the country.

Initiatives like credit guarantee schemes for MSMEs, increasing the limit of Mudra loans to Rs 20 lakh for those who have paid back the dues, creating alternative methods to evaluate the eligibility of MSME for loans, and expanding SIDBI branches, as announced in the budget, are expected to provide much-needed accessibility to credit and additional support required for further growth of the sector, he said.

"We are optimistic and committed to leveraging these initiatives to foster growth and create socio-economic impact across the country," the senior bank official said.

Dr Prathap C Reddy, Founder-Chairman of Apollo Hospitals said, "With an alarming 1.46 million new cancer cases projected, the exemption of customs duties on three additional cancer medicines is a vital step toward easing treatment costs."

Addressing gaps in cancer care requires collaboration between communities, healthcare providers and policymakers. Public insurance programmes like AB-PMJAY have made progress, but further public-private collaboration is crucial for affordability and accessibility, he added.

Additionally, adjustments in basic customs duty for medical equipment components would support domestic manufacturing and lower costs for advanced technologies, Dr Reddy pointed out.

The huge allocation in both rural and urban locations under the Pradhan Mantri Awas Yojana credit-linked subsidy scheme is a big boost for the affordable housing segment, D Lakshminarayanan, MD, Sundaram Home Finance said in a statement here.

Lower stamp duty for women purchasing property is likely to drive the growth of more first-time home buyers, he added.

Moreover, he said that the digitisation of land records would improve transparency, boost revenue compliance and improve overall credit flow.

"The huge allocation in both rural and urban locations under the PM Awas Yojna credit-linked subsidy scheme is a big boost for the affordable housing segment," Lakshminarayanan added.