The Union budget has focused on skill development, start-ups and entrepreneurship development. But, there is nothing much for micro, small and medium-scale enterprises (MSMEs), say industry representatives.
According to C. Muthusami, president of Tamilnadu Small and Tiny Industries’ Association, some of the long-pending demands of the MSMEs such as increase in excise duty exemption limit (from Rs. 1.5 crore to Rs. 5 crore) and higher depreciation benefits for CNC machines have not been addressed. The excise duty exemption limit was fixed 10 years ago. Since then, prices of raw materials have gone up, he says. Even the increase in turnover limit in presumptive taxation scheme from Rs. 1 crore to Rs. 2 crore might not benefit the MSMEs much as the turnover is less than Rs.1 crore for most of the micro units.
Southern Indian Engineering Manufacturers’ Association president V. Lakshminarayanaswamy said the growth of engineering units will be hit because of reduction in accelerated depreciation and expenditure in research and development. The pump industry is disappointed as there is no mention about replacement of pumps with energy efficient ones, though the budget has several announcements for the agricultural sector.
According to president of Coimbatore District Small Industries’ Association E.K. Ponnuswamy, the budget gives thrust to start-ups and skill development. It has benefits for women, Scheduled Caste and Scheduled Tribe entrepreneurs, proposes multi skill institutes and entrepreneurship development through online programme.
According to C. Muthusami, president of Tamilnadu Small and Tiny Industries’ Association, some of the long-pending demands of the MSMEs such as increase in excise duty exemption limit (from Rs. 1.5 crore to Rs. 5 crore) and higher depreciation benefits for CNC machines have not been addressed. The excise duty exemption limit was fixed 10 years ago. Since then, prices of raw materials have gone up, he says. Even the increase in turnover limit in presumptive taxation scheme from Rs. 1 crore to Rs. 2 crore might not benefit the MSMEs much as the turnover is less than Rs.1 crore for most of the micro units.
Southern Indian Engineering Manufacturers’ Association president V. Lakshminarayanaswamy said the growth of engineering units will be hit because of reduction in accelerated depreciation and expenditure in research and development. The pump industry is disappointed as there is no mention about replacement of pumps with energy efficient ones, though the budget has several announcements for the agricultural sector.
According to president of Coimbatore District Small Industries’ Association E.K. Ponnuswamy, the budget gives thrust to start-ups and skill development. It has benefits for women, Scheduled Caste and Scheduled Tribe entrepreneurs, proposes multi skill institutes and entrepreneurship development through online programme.