Budget Reaction: MSMEs-Experts speak to KNN

Ruparani, President, Confederation Of Women Entrepreneurs (COWE): My major concern is MSME sector, budget allocation is there for MSME in the budget but there is no transparency during the process of  distribution of funds in the system and major poor SMEs end up with no funds in their hands. second thing is we want one reservation for Women heads as Member of Legislative Council so that women have the power to take their issues and problems forward.

Manmohan Gaind, President, Manesar Industries' Welfare Association (MIWA):  I don't think much has been done for MSME industries in this budget and focus has not been to generate jobs and help MSME by reduction in some interest rates chargeable to them from banks neither buying machinery has been made a priority to get a better rate of interest for capex. Allocation of funds are there around Rs 3794 crores but it will not help all MSMEs across the country. one good thing about this budget is increase in custom duty across the board will help industries to fight cheaper imports.

Archit Gupta, Founder & CEO Clear Tax: Standard deduction has been reintroduced but at a cost, it takes away medical reimbursement and travel allowance. There were several demands to raise medical reimbursement from 15,000 and bring it up according to current prices (the amount has been same since more than a decade). However, now the clamour for raising this limit will die down. With this, for a salaried, the amount taxable under salary shall be reduced by Rs 5,800. While cess will go up by 1% Senior citizens have much to rejoice and will face much lower burden of taxes, this is especially crucial in the falling interest rates from banks and deposits.

Electronics Industries Association of India: The Budget has not allocated any funds for ESDM sector and it is hoped that the National Policy on Electronics Version 2.0 which is under preparation would be adequately funded so that its industry promotion Schemes can be implemented successfully to attract investments.

The Finance Minister has used Customs Duty (BCD) extensively on a number of finished goods with an eye on driving manufacturing growth and to realize the “Make in India” dream. While this is a welcome move and industry has been pleading for it, this is a medium term measure and industry must respond with investments in higher value added manufacturing, technology up gradation and generate employment which is a dire need for our country.