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Worthy-budget but not sufficient for capital starved MSEs: KASSIA

Updated: Feb 01, 2023 11:53:49am
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Worthy-budget but not sufficient for capital starved MSEs: KASSIA

Bengaluru, Feb 1 (KNN) Welcoming the revamp of the CGTMSE, Karnataka Small Scale Industries Association (KASSIA) has pointed out that Micro, Small Enterprises (MSEs) deserved a great deal more as most are capital starved and do not have access to collateral-free credit at affordable costs. 

The budget presented by the Union Finance Minister Nirmala Sitaraman has given thrust to infrastructure, youth, inclusive development, green growth etc., said K.N. Narasimhamurthy, President, KASSIA.

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In this direction, the budget has made a 33 per cent hike in the capital investment outlay which KASSIA hopes will be targeted at those investments that yield the best outcomes from the national perspective.

It has appreciated the emphasis on green hydrogen and renewable energy besides agriculture and also the increased allocation and focus on skilling.

“We, of course, welcome the reductions in customs duties on certain inputs and capital goods which hopefully will improve competitiveness of our industry and help in larger exports,” he added.

The increase in IT rebate to Rs 7 lakh, and the reduction in rates under the slabs will be considerable help to the middle and salaried class, said the chief.

Expressing its relief at the swift recovery of MSMEs enabled by the robust credit disbursement under the emergency linked credit linked guarantee scheme (ECLGS) as per the economic survey 2023 report, KASSIA’s head said the doubling of EPFO membership to more than 27 crore was a significant pointer to job creation.

“The increase of scope of Digi locker for MSMEs and the proposal of Jan Vishwas bill to amend 42 laws will further help in reducing compliance requirements for industry,” said Narasimhamurthy.  (KNN Bureau)

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