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Ludhiana industry shares mixed feelings about union budget
Various industrial and business associations have expressed disappointment with the Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman.
Various industrial and business associations have expressed disappointment with the Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman. Industry leaders highlighted several areas where the budget failed to meet the expectations of the small and medium-sized enterprises (MSMEs) and manufacturing sectors in Ludhiana.
Taxation Disparities
FICO chairman KK Seth welcomed changes in the individual tax slabs but criticized the lack of rationalisation in taxation for industries. He pointed out that while private and public limited companies are taxed at a maximum of 25%, partnership and proprietorship firms face a 30% tax rate. Seth stated, “This disparity does not provide a level playing field for corporates and small industries. We are utterly disappointed that the rationalization of income tax has not been addressed in this budget.”
Inadequate Support for MSMEs
FICO president Gurmeet Singh Kular emphasised the absence of relief from Section 43-B(H) of the Income Tax Act, which mandates payment dues for micro and small enterprises (MSEs) be cleared within 15 to 45 days to claim expenses. Kular expressed frustration, stating, “We requested to include all assesses of income tax, including manufacturers, traders, and exporters, under this act and to rationalize the payment period. Unfortunately, nothing has been done.”
Welcome measures
Despite the overall disappointment, FICO general secretary Rajeev Jain welcomed a new scheme introducing term loans for MSMEs to purchase machinery and equipment without collateral. This guarantee fund will provide up to ₹100 crore in guarantees. Jain said, “We await the details, but this is a positive step for MSMEs.”
Promises not kept
All industry and trade forum national president Badish Jindal stated that India is slowly moving on the path of Sri Lanka with a huge fiscal deficit of over ₹16 lakh crore. Even after promises made in Ludhiana to Industry, the finance minister remained mum on 43 B and bringing petroleum and power into the preview of GST.
Disappointing budget
United Cycle and Parts Manufacturers Association (UCPMA) President Harsimrjit Singh Lucky on behalf of the association described the budget as a very disappointing budget. He said that there is no mention of Punjab or Punjab’s industry in the entire budget. The Central government has given Punjab step-motherly treatment in the budget.
