Mysuru industrialists hail cut in tax burden on MSMEs
The Confederation of Indian Industry, Mysuru chapter, organised a live Union Budget Viewing Session at Quorum Hotel here on Thursday. The objective of the session was to provide a common platform for industry leaders and media to view, discuss and analyze the sectoral implications of the Budget.
Senior industry representatives were present at the session to give their reactions after going through the Budget. Here are the reactions from some of the industrialists:
Deric Fernandes, MD, Deco Equipments, said, “To address the problems faced by MSMEs, better access to finance and reducing the income tax to 25% with annual turnover of up to Rs 250 crore will help the growth of both employment and economy. Also, the finance minister mentioned that the government will soon announce measures to address the non-performing assets among MSMEs, which is in the right direction.”
Amit Kumar, business unit head, L&T Electrical & Automation, L&T Mysuru, said, “The Budget looks good. The industry had expected that it will be a populist Budget and it seems like Arun Jaitley has done a good job in terms of addressing fiscal deficit as it is very important for the country’s economy. Health sector and rural infrastructure have got the much needed push. But there are a few more things that could have been done, including green infrastructure, FDI in education etc.”
Members of the Mysore Industries Association dubbed the Budget as agriculture and industrial development budget, but also criticized the government for presenting an ‘election budget’. Secretary of the association Suresh Kumar Jain said, “The government speaks of digital India on one hand and on the other it has increased the prices of computers and mobiles. The Rs 11 lakh crore announced towards agriculture loans is a welcome move.”
He also said that solar pumps for agricultural land will boost industries and protect farmers’ interest. The Bharat Mala project covering 35,000-km road will ease out transportation and improve connectivity in the country. The Rs 3,794 crore to MSME sector will boost support to industries. He also said that Rs 3 lakh crore to Mudra is a ray of hope for getting loans at subsidized rate of interest with subsidy. Presently, Mudra loan has no subsidy or interest support. Only 7% of MSMEs have availed bank loans, while remaining 93% are with private money lenders, he added.