FICO submits suggestions for Union Budget to FM

Ludhiana, January 3, 2022: Today, Federation of Industrial & Commercial Organization (FICO) under the leadership of K.K. Seth Chairman FICO along with Vipan Mittal Vice Chairman FICO, Gurmeet Singh Kular President FICO, Manjinder Singh Sachdeva Senior Vice President FICO and Rajeev Jain General Secretary FICO, drafted and submitted the suggestions for the upcoming Union Budget for the year 2022-2023 to Finance Minister Nirmala Sitharaman. 
The suggestions are as under:

1. Stability of Tax Regime:
We are of strong belief that the lower the tax rates - better the revenue. The government should pass on the benefit of Tax at 25% given to the corporates, to the Proprietorships, Partnerships & LLPs also. 

2. Rationalization of Steel Prices:
The price of steel has almost doubled in past year or so, making it unviable for the MSMEs to operate. Prices in export orders are not increasing, incurring major losses to the industry. Especially the MSMEs, who are on the verge of closure. It is requested that unless the availability of steel is sufficient, the export should be banned. We also urge the government to rationalize the steel and other raw material’s prices as the sudden spike in raw material prices has made it impossible for MSMEs to meet confirmed orders and exports are in danger of loss of markets to competitors with long term negative consequences.

3. CLCSS (Credit Linked Capital Subsidy Scheme):
Credit Link Capital Subsidy Scheme has been introduced to facilitate technology up-gradation in MSMEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of up to Rs.1 crore availed by them) for induction of well-established and improved technology. Government of India has suspended the scheme, and reintroduced till 31st March 2020 only. We demand that Credit Link Capital Subsidy Scheme should be made permanent as it is the only scheme for the upgradation of the MSME industry.  

4. Fund Scheme for Upgradation of Bicycle Industry:
Bicycle Industry in the mother industry of Punjab which makes India the 2nd Largest Manufacturers of World, where as China is the Largest Manufacturer of Bicycles, but the Gap between the Manufacturing quantity of both is very high, China produces 20 Crores Bicycle Per Year, whereas India only manufactures 1 Crore 30 lakhs bicycles per year. If the Government wants to reduce this gap, then the Technology Upgradation Fund scheme should be introduced for the bicycle industry, so that the bicycle industry gets the benefits up to 40 Crores.  So, Bicycle Industry can upgrade themselves to compete with the world & to become India largest Manufacturers of Bicycle in the World.

5. Freight Equalization:
There should be a freight subsidy for the north Indian exporters who have been far away from the seaports so that they should also be able to maintain competitiveness with those who are located near to the seaports.

6. Technology Upgradation Fund for industry:
The industry in India usually works on the traditional machines, where as the world has upgraded to the latest Industry 4.0 concept of working, Indian industry needs funds to match the global standards of manufacturing. The government should introduce a Technology Upgradation Fund Scheme for industry.