Very little for MSME sector: Indian Industries Association
The Indian Industries Association (IIA), a prominent industry lobby group, has said the budget has nothing for the micro small and medium enterprises (MSME) sector, which comprises a bulk of industrial units.Updated: Feb 02, 2018 13:38 IST
The Indian Industries Association (IIA), a prominent industry lobby group, has said the budget has nothing for the micro small and medium enterprises (MSME) sector, which comprises a bulk of industrial units.
“Although a lot of measures have been proposed for the poor and farmers in the budget, there is very little for the MSME sector,” said Sunil Vaish, president of the IIA.
“We were expecting further reduction in corporate tax for the MSME sector in this budget,” he added.
In last year’s budget, the finance minister had said corporate tax will be reduced in a phased manner. At that time, it was reduced to 25 % for business houses having a turnover up to Rs 50 crore, benefiting the MSME sector.
But in the union budget for 2018-19, the tax benefit has been extended to larger business units having an annual turnover up to Rs 250 crore.
Vaish also said, “It has been announced that bank loans to the MSMEs will be sanctioned online. Yet, the MSME sector is doubtful in view of the attitude of banks towards it.”
“Moreover, the online systems are not reliable at present as is being experienced in the case of the GST,” he said.
“Today, reports have come in from various chapters of the IIA that the online e-way bill system is not properly operational,” he added.
Vaish, however, said the decision to set up mega food park and provide incentives for the apparel and leather sector will give a boost to the MSME sector.
Manmohan Agarwal, the IIA vice-president, said the emphasis on road and health infrastructure and improvement in the education system would indirectly help the MSME sector.
CONSUMER DEMAND TO GET A BOOST: ASSOCHAM PRESIDENT
Sandeep Jajodia, the Assocham president, said the finance minister had placed much emphasis on agriculture and rural India, allocating bulk of resources to interior landscape, while helping the middle class salaried employees along with giving relief to senior citizens. These measures will boost consumer demand and help revive economic growth, he said.
“The budget is on expected lines and provides support to sections of the society where it was needed the most. The agriculture and rural landscape were in some kind of distress and provision of over Rs 14.34 lakh crore on rural infrastructure should also add to employment generation, especially in the farm sector,” Jajodia added.
“Relief to salaried employees by way of Rs 40,000 per annum standard deduction in lieu of transport allowance and medical reimbursement will leave more disposable income in the hands of the middle class and boost consumer demand,” he said.
“Initiatives like ‘Operation Green’ to stabilise prices of onion and potato will help ease retail inflation and help the RBI in keeping interest rates on the lower side,” Jajodia said.
‘MANY MEASURES IN LINE WITH CII RECOMMENDATIONS’
Chandrajit Banerjee, director general of the Confederation of Indian Industry (CII), said: “Many of the measures in the budget are in line with the CII’s recommendations such as incentives for new jobs, extending fixed term employment, enhancing quality of education including teacher training and addressing healthcare access.”
“Overall, this is a balanced and prudent budget that sets the foundation for future growth in the economy,” he said.