Ludhiana, Feb 2 (KNN) Business organisations in Ludhiana have expressed strong opposition to the interim budget presented by the Centre for the fiscal year 2024-25.

The critics have argued that the government's budgetary measures have failed to provide relief to Micro, Small, and Medium Enterprises (MSMEs).

According to industrialists, the budget lacks provisions for a technology upgrade scheme and fails to offer any incentives or new initiatives for the small and medium industry.

Badish Jindal, President, Federation of Punjab Small Industries Associations (FOPSIA), voiced discontent, stating that the budget seemed to focus more on giving Sanskrit names to schemes than addressing the pressing issues faced by MSMEs.

He emphasised that the sector, which contributes 40 per cent to export and production and employs 13 crore Indians, does not appear to be a priority for the Prime Minister.

Jindal pointed out that the budget for the Prime Minister's Employment Generation Programme (PMEGP) and other credit schemes for MSMEs has decreased significantly from Rs 21,233 crore to Rs 12,462 crore.

Over the past decade, the government's revenue surged from Rs 16,65,297 crore to Rs 47,65,768 crore, largely attributed to high inflation and substantial direct and indirect tax rates, he added.

Gurmeet Singh Kular, President, Federation of Industrial and Commercial Organisation (FICO), suggested that the budget should have introduced an International Cooperation Scheme to facilitate MSMEs in attending international exhibitions and learning from global manufacturing excellence to enhance their productivity.

KK Seth, Chairman, FICO, expressed disappointment over the lack of income tax rationalisation in the budget. He highlighted the disparity in tax rates, where income tax for private and public limited companies is capped at 25 per cent, while partnership firms and proprietorship firms face a higher cap of 30 per cent, creating an uneven playing field for corporates and small industries.

Harpal Singh Bhamber, Head of FICO's bicycle division, criticised the absence of a special package for the bicycle industry, despite India being the second-largest bicycle manufacturer globally, following China.

(KNN Bureau)