An interest subvention scheme for micro, small and medium enterprises (MSMEs), stress on job creation and a better deal for Telangana figure in a list of expectations trade and industry body FTCCI has from the Union Budget 2019-20.
Towards reviving the MSME growth and reducing their financial stress, such enterprises may be offered 2% interest subvention on loans up to ₹5 crore and direct tax concession, said Arun Luharuka, president, Federation of Telangana Chambers of Commerce and Industry (FTCCI). A press release from the FTCCI on the expectations from the budget, which was scheduled to be presented on Friday, said the federation expected the government to announce concrete measures to boost growth and achieve 8-10% growth rate.
Augmenting public expenditure in agricultural infrastructure such as irrigation, cold storages would help improve the rural demand and consumption. Noting that the budget should focus on job creation, Mr. Luharuka said investment should be focused in job-creating sectors. “The organised sector does not create much employment due to rising automation. Large numbers of jobs were created in education, health, small irrigation, rural infrastructure like telecom and roads. So, the need was to invest in these areas,” he said.
The major obstacle in increasing labour intensity in manufacturing was stringent labour laws, FTCCI said, seeking relaxation in select labour intensive sectors.