Technology Gives Chance of Growth to Every Business: New Govt. Schemes

Technology is central to the growth of modern businesses. With remarkable development in digital connectivity and information technology (IT), businesses are aiming to maximize their reach. In 2017, India’s IT industry contributed around 8% of the nation’s GDP.

The Government of India has consistently encouraged the boom of small and medium scale businesses to support the Indian economy.

Moreover, with online tax filing and GST login facilities available enterprises want to incorporate the recent technological advancements to compete in the global market.

The government has launched multiple initiatives to offer vocational training to the Indian workforce.

The purpose of such training is to create a capable and competent populace possessing digital literacy.

Micro, Small, & Medium Enterprises (MSMEs) have benefitted the most from this technological revolution facilitated by government schemes.

Government initiatives to boost technology in business

The Government of India has ardently supported the implementation of technology in MSMEs. It has launched various initiatives to ensure technological co-ordination and organisation across sectors.

Government loan schemes also enable businesses to upgrade their infrastructure to accommodate the best technological practices for growth.

• For vocational training in technology

The government has undertaken certain initiatives to provide the young workforce with technological literacy and skills to serve MSME needs.

• Visvesvaraya PhD Schemes: Electronics & IT

This scheme was launched by the Ministry of Electronics and Information Technology (MeitY) to offer training in Electronics System Design and Manufacturing (ESDM), and IT Enabled Service (ITES) to 1500 PhD candidates across India.

This scheme also provides vocational training to 200 Young Faculty Research Fellowships.

The objective of this scheme is to boost research & development (R&D) in technology-intensive sectors.

It ensures that PhD scholars acquire skills to identify the technological requirements of MSMEs as per international business standards.

• Financial assistance to set up Electronics & ITC academies

The central government has allocated funds to set up Electronics & ITC departments in IITs, IIITs, and NITs to create a base of employable graduates in the technology service MSMEs.

Special attention is given to Engineering, Science, and Polytechnic colleges to develop a technologically capable workforce for MSME needs.

• Skill Development in ESDM

The central government aims to provide training in skill development to 3,28,000 aspirants in the Electronics System Design and Manufacturing (ESDM) discipline to boost employment in electronics, telecom, health and automotive sectors.

• Government loan schemes for business growth

MSMEs have the option to consider several government loan schemes to boost their competence and infrastructure for combining technology and business operations. Enterprises require this fund to create a growth plan for small businesses.

• MUDRA loans

Business owners can opt for loans up to Rs.10 lakhs under the MUDRA scheme. At an affordable interest of 8.40% and a reasonable tenor of 1-5 years, the fund acquired under this scheme can be allotted to the development in technology and product modification.

Enterprises may leverage the fund to provide training to its employees to tackle the technological challenges prevailing in the relevant market.

• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

This scheme provides financial coverage to business loans up to Rs.2 Cr. Small and micro-enterprises can claim financial cover to 50% and 85% respectively against defaulting.

An enterprise may invest the fund in the latest sector-specific technology to gather an advantage over its competitors. The sanctioned amount can also be used to employ experts in technology for a boost in business.

Businesses can fund the use of technology to increase business efficiency.

GST filing for MSMEs

Filing for GST returns is mandatory for MSMEs under the ‘one nation one tax’ structure. Around 4.8 million MSMEs are registered with the GST council under the Udyog Aadhar Memorandum (UAM) program.

GST is an efficient taxation system that implements automation and data-intensive software to eliminate error in the new tax administration. MSMEs can avail GST login portal facilities online for maximum convenience.

Thus, details of sales, purchases, input tax credit and output GST can be found on the GST login portal. This feature improves the overall efficiency and transparency in the taxation system.

When an MSME has an updated database of return figures, it can avail loans at lower rates of interest and reasonable tenors. Individuals can reap the benefits of collateral-free business loans whenever their businesses face a financial crunch.

Bajaj Finserv provides pre-approved offers to ensure quick and easy disbursal. These offers are available on home loans, business loans, and personal loans.

Technology has become the make-or-break factor of any business. To compete in the business market, an MSME must have a technological advantage for further growth. Business loans can aid companies to meet these technological requirements.