Budget fails to cheer SMEs

The union budget has failed to bring any cheer to the small and medium industry, which is already reeling under slowdown and is the biggest employment generator in the state.

The union budget has failed to bring any cheer to the small and medium industry, which is already reeling under slowdown and is the biggest employment generator in the state.

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Small and medium enterprises are ruing there has been no substantial benefits or favorable policy announcements in Friday’s budget with some even calling it a “willful neglect”.

Moreover, the 2% hike in service tax and central excise duty has particularly drawn the industry’s ire. “This means prices will soar and demand will drop…,” said HP Yadav, president of the NCR Chambers of Commerce and Industries.

The finance minister’s proposal for Rs 5,000 crore venture fund with SIDBI for micro, small and medium enterprises too hasn’t boosted the industry’s morale.

“The bank norms aren’t easy. How much of the R5000 crore will be used by the end users is also a question, said Col (retd) Raj Singla, convenor of Gurgaon-Manesar Forum of Haryana MSME Federation.