Cohan Consultants LLP – Pune, MH, India

What are Government Subsidies?

What are Government Subsidies?

What are Government Subsidies?

You might have heard the word “Subsidy” many times either from your friend, business partner, CA, peers or family. But, do you know exactly what is subsidy? How does it function?

Let us deep dive into the world of subsidy.

Subsidies are unplanned expenditures by the Central or State Government via discounts or grants to public/private companies with one objective: to make commodities affordable to the public. The companies can avail the benefits of the subsidies via discounts, tax rebates, lower input cost, cash payment, etc. Once the subsidies are availed, there is no requirement to pay it back in any form of transaction.

Why Subsidies are important in the Indian economy?

About 30% of GDP contribution is catered by Small and Medium Enterprises in India which is crucial for Indian Economic Growth, Employment and Entrepreneurial Development. Subsidies play an important role to keep up the inflation under control especially when global prices are rising or to protect the natural falling of industries in the long term.

What is the future of subsidies in India and why is it necessary for you?

The future of subsidies in India lies under the belt of Renewable energy, EV, Textile, Cold Chain and many others. It could assist in your expansion plan, increase production, help to run day-to-day operations smoothly, etc.

Why is MSME Financing necessary to you?

Why is MSME Financing necessary to you?

Why is MSME Financing necessary to you?

Finance is the root of running any business either today or tomorrow. It can come handy to assist your growth plans or managing operating expenses. India is a geography with various factors affecting businesses’ smooth functioning. One of the major factors that affects the financial management is seasonality of the production that comes with sudden load of operations and unpredictable outcomes.
MSME Financing can be easily utilized without losing control over the company as opposed to raising funds from angel investors or private investors. The business owners can access these funds to meet short-term goals which can be easily accomplished without haywired processes.

What is the scenario for MSME Financing Worldwide and India?

What is the scenario for MSME Financing Worldwide and India?

What is the scenario for MSME Financing Worldwide and India?

MSME are alone responsible for 50% of employment creation across the globe especially in emerging economies. As per current projections of population growth, nearly 0.6 billion new jobs would be required to absorb the working population and keep economies growing. To grow at such a rate, the common issues faced by MSMEs is access to capital as there is an unmet need of $5.2 trillion every year in developing countries.
Talking about India, disbursing loans to the MSME is crucial to reach a $5 trillion economy in future. Recently, there has been a massive growth of 18% in the last two years (INR 31Lac Cr to 36.4Lac Cr) with a share of 88% demand coming from the micro segment followed by 10% from Small and 2% from medium enterprises. As compared to traditional ways to access the loan/financing, these days the process can be done via online mode which reduces turnaround time to get access to funds with increase in convenience, less visit to lender’s office and lower interest rates.

What is Debt & Equity Financing?

What is Debt & Equity Financing?

What is Debt & Equity Financing?

It is an unsecured loan offered to businesses (self-employed, startups, etc.) to meet various related activities and grow the business. The repayment terms are based on the amount raised, cash flow projections and other considerations (whichever applicable). To avail the MSME financing, the business owner must fulfill the prerequisite set by government/financial institutions.

Lorem Ispum

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.