K'taka industries welcome budget; say it gives push for growth in SMEs
Updated: Jul 10, 2014 03:40:24pm
Bangalore, Jul 10 (KNN) The Union Budget has addressed many issues concerning the small scale industrial sector in keeping with its status as the largest creator of jobs and the second largest contributor to the GDP, said Karnataka Small Scale Industries Association (KASSIA) in its reaction to the Budget.
“The FM has announced several initiatives that give us hope such as developing 20 industrial clusters, promoting entrepreneurship Rs 10,000 cr fund for startups, developing national industrial corridors to link cities, revising the definition of MSME to provide for higher capital ceiling, suitably amending the Apprentice Act to strengthen the Apprentice Training Scheme, announcing a national multi-scale programme called Skill India to provide training and support for employment, creating a Venture Capital fund of Rs 10,000-crore for SMEs, and preparing the ground for introduction of GST by end of this year,” President, KASSIA, Chidananda M Rajamane said.
The plan to develop an industrial cluster at Tumkur on the Bangalore-Mumbai industrial corridor fulfills a long pending demand of the State, he said as was the decision to bring out an Exit policy for small scale industrialists.
KASSIA said the FM had recognized the need to examine the financial architecture of SME sector and set up a committee to address the bottlenecks in credit which would give its suggestions in 3 months.
For the manufacturing sector, the budget has proposed to allow manufacturing units to sell their products through retail and e-commerce. The industry body has also welcomed the announcement of a credit scheme of Rs 200-crore for startups by SC/STs.
The Budget’s indirect tax measures such as reducing customs, duty cuts on electronic imports, concessions for renewable energy, cut in import duty for manufacturing sector and on chemicals used in manufacture of soaps, battery waste, coal tar pitch, spandex yarn would have a positive effect on the MSME sector, Rajamane observed.
Other proposals that bring cheer to the small scale industry were the cut in the cost of steel, packaged foods, and plastic products, he said.
KASSIA also hailed the announcement of the e-governance platform planned to integrate all government departments and Ministries, which would significantly cut bureaucratic red-tape.
However, the KASSIA president said the Budget has not touched upon a revision in labour laws as widely expected and enhancement of excise exemption from Rs 1.5 cr to Rs 5 crore which was long pending. (KNN/SD)
“The FM has announced several initiatives that give us hope such as developing 20 industrial clusters, promoting entrepreneurship Rs 10,000 cr fund for startups, developing national industrial corridors to link cities, revising the definition of MSME to provide for higher capital ceiling, suitably amending the Apprentice Act to strengthen the Apprentice Training Scheme, announcing a national multi-scale programme called Skill India to provide training and support for employment, creating a Venture Capital fund of Rs 10,000-crore for SMEs, and preparing the ground for introduction of GST by end of this year,” President, KASSIA, Chidananda M Rajamane said.
The plan to develop an industrial cluster at Tumkur on the Bangalore-Mumbai industrial corridor fulfills a long pending demand of the State, he said as was the decision to bring out an Exit policy for small scale industrialists.
KASSIA said the FM had recognized the need to examine the financial architecture of SME sector and set up a committee to address the bottlenecks in credit which would give its suggestions in 3 months.
For the manufacturing sector, the budget has proposed to allow manufacturing units to sell their products through retail and e-commerce. The industry body has also welcomed the announcement of a credit scheme of Rs 200-crore for startups by SC/STs.
The Budget’s indirect tax measures such as reducing customs, duty cuts on electronic imports, concessions for renewable energy, cut in import duty for manufacturing sector and on chemicals used in manufacture of soaps, battery waste, coal tar pitch, spandex yarn would have a positive effect on the MSME sector, Rajamane observed.
Other proposals that bring cheer to the small scale industry were the cut in the cost of steel, packaged foods, and plastic products, he said.
KASSIA also hailed the announcement of the e-governance platform planned to integrate all government departments and Ministries, which would significantly cut bureaucratic red-tape.
However, the KASSIA president said the Budget has not touched upon a revision in labour laws as widely expected and enhancement of excise exemption from Rs 1.5 cr to Rs 5 crore which was long pending. (KNN/SD)
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