New Delhi, February 1, 2018: “MSMEs are the engine of growth and employment generation," said the Finance Minister Arun Jaitley while presenting Union Budget 2018. The FM announced Rs 3794 crore allocation to MSME sector for credit support, capital and interest subsidy on innovation. Commenting on the Union Budget 2018-19, India Inc, applauded the incentives to the MSME sector. Here are a few quick reactions from different industry players:
The push to MSME along with digitization will boost retail sector: Netree
Desi Valli, the founder and CEO of Netree, India’s leading Retail Engagement Platform and the world’s first connect-promote-transact platform for retailers, has applauded the Union Budget 2018-19, with reference to the MSME sector on account of meeting their credit demands.
Allocation to the MSME sector in the form of capital support and interest subsidy by 2022, and expanding the cap of corporate tax of 25% extended to companies with turnover up to Rs 250 crore in FY 2016-17, will make the economy robust. This will invite many smaller players to join the formal sector and bring transparency with thrust on technology assimilation and digital payment integration in all business processes. Union Budget’s resolve to promote the digital economy, will be a game changer in terms of business promotion and transactions.
Desi Valli, founder and CEO of Netree, said, “The Union Budget 2018-19, is focused, forward looking and growth oriented. Focus on rural infrastructure, agriculture, education and healthcare, will usher a new era of development in India. Government’s sustained focus on the digital payments and ease of doing business, will boost retail growth in India”.
Autocomponent market place will benefit with continued focus on digital transactions and ease of doing business: boodmo
Even foreign entrepreneurs in India echoed similar sentiments. Yevgen Sokolnikov, the CEO and co-founder of boodmo, co-founder, an auto component marketplace start-up company, in India, said, “I am happy to note that India is giving special attention and treatment to medium and small enterprises (MSMEs), which is said to have been due for long. I expect that businesses like ours having technology interface, will gain owing to the country’s renewed focus on digital transactions and ease of doing business”.
Simplifications in indirect taxes will ease compliance requirements for the MSME EV industry: SMEV South Chapter
Hemalatha Annamalai, South Chapter Chief, SMEV and CEO & Founder Ampere Electric Vehicle Pvt Ltd, said that SMEV welcomed the Union Budget 2018-19. “I am sure that simplifications in indirect taxes will ease compliance requirements for the MSMEs and also, electric vehicle companies in India”, she said.
While applauding government’s focus, Annamalai said, “The budget intends active measures for promotion of rural infrastructure and agricultural for the country and thus, increasing income of rural people. And then, the renewed thrust to MSMEs to the tune of INR 3,794 crore in the form of capital support and interest subsidy by 2022 will surely help meet the credit demands of many companies. Considering India’s Electric Mission 2030, continued govt initiatives towards both rural and MSME empowerment, will help achieve mass percolation vis a vis EVs in the country.”
“The focus on incentives to technology and R & D will be big booster to the innovative companies,” she said.
Expressing concern of the industry Hemalatha said, “High tax (GST) on the EV components still remains a big concern for the industry, which this budget must revise to 5% for all the EV components. Also, clarification on the extension of FAME scheme for the two wheeler EVs needs immediate government attention.”
Tax reduction to 25% from 30% will help MSMEs scale up newer heights: Aurelius
Sumit Peer, Founder and CEO, Aurelius, a consultative insourcing solutions company, finds the union budget a well crafted one with focus on entrepreneurs in the MSME industry for better progress of the country’s economy.
“Taxes led to lot of stress amongst MSMEs. But as government aptly recognises the MSME players as critical players in the Indian eco system, the tax reduction to 25% from 30% will be a great relief. The revised steps to work on stressed accounts and NPAs can help the MSME sector to leapfrog along with dedicated funds and different interest rates”, Peer said.