Coimbatore: The Union Budget evoked mixed response from industrialists, who were predominantly disappointed.
While a section of those running micro, small and medium enterprises (MSME) welcomed the announcements such as exempting firms with Rs 5 crore turnover from tax auditing, extension of debt restructuring till March 31, 2021, and simplified GST returns from April 2020, others said the Budget has no other major announcements for MSMEs, automobile sector and electric vehicles.
V Lakshminarayanasamy, president of Indian Chamber of Commerce and Industry (ICCI), Coimbatore chapter, said the Budget fulfilled 55% of expectations. “As the fiscal deficit target has been fixed at 3.8%, we can expect more expenditure to spruce up the economy,” he said and welcomed the announcements on agriculture and water harvesting “This Budget is better than the last one. But we have to see how much it would increase spending.”
R Ramamurthy, president of Coimbatore District Small Industries (Codissia), said the decision to announce national logistics policy would help MSMEs compete at the international level. Allocation of Rs 27,300 crore for industrial development is also encouraging, he said.
Meanwhile, J James, president of Tamil Nadu Association of Cottage and Micro Enterprises (TACT), said the Budget was an overall disappointment, as it did not have any major announcements on GST and defence production. “We expected GST exemption for job-order, which was not announced. We had also demanded reduction of loan interest rates to 5%. There is also nothing on defence production in Coimbatore, which is disappointing.”
C Sivakumar, president of Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association (Cotma), welcomed the announcement on GST simplification and tax-audit exemption up to 5crore. “But our demands of reduced interest rates and giving 40% of turnover as working capital loans have not been met. This Budget is neither promising nor disappointing.”
K Maniraj, president of Kovai Power Driven Pumps and Spares Manufacturers Association (Kopma), said though 20 lakh farmers will be given financial aid to buy solar pumpsets, they would work only for five to six hours on sunny days and would be a waste of investment. “If electric motors are given GST exemption, farmers and manufacturers would benefit,” he said.
Regarding the announcements for textile sector, representatives of Indian Texpreneurs Federation said the announcement on abolishing anti-dumping duty on purified terephthalic acid (PTA) will be a big boost to the textile sector’s export competitiveness. The formulation of National Technical Textiles Mission will help tap the huge potential of the sector.
The industrialists also expressed disappointed over no announcement on new train services and infrastructure development in Coimbatore.
While a section of those running micro, small and medium enterprises (MSME) welcomed the announcements such as exempting firms with Rs 5 crore turnover from tax auditing, extension of debt restructuring till March 31, 2021, and simplified GST returns from April 2020, others said the Budget has no other major announcements for MSMEs, automobile sector and electric vehicles.
V Lakshminarayanasamy, president of Indian Chamber of Commerce and Industry (ICCI), Coimbatore chapter, said the Budget fulfilled 55% of expectations. “As the fiscal deficit target has been fixed at 3.8%, we can expect more expenditure to spruce up the economy,” he said and welcomed the announcements on agriculture and water harvesting “This Budget is better than the last one. But we have to see how much it would increase spending.”
R Ramamurthy, president of Coimbatore District Small Industries (Codissia), said the decision to announce national logistics policy would help MSMEs compete at the international level. Allocation of Rs 27,300 crore for industrial development is also encouraging, he said.
Meanwhile, J James, president of Tamil Nadu Association of Cottage and Micro Enterprises (TACT), said the Budget was an overall disappointment, as it did not have any major announcements on GST and defence production. “We expected GST exemption for job-order, which was not announced. We had also demanded reduction of loan interest rates to 5%. There is also nothing on defence production in Coimbatore, which is disappointing.”
C Sivakumar, president of Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association (Cotma), welcomed the announcement on GST simplification and tax-audit exemption up to 5crore. “But our demands of reduced interest rates and giving 40% of turnover as working capital loans have not been met. This Budget is neither promising nor disappointing.”
K Maniraj, president of Kovai Power Driven Pumps and Spares Manufacturers Association (Kopma), said though 20 lakh farmers will be given financial aid to buy solar pumpsets, they would work only for five to six hours on sunny days and would be a waste of investment. “If electric motors are given GST exemption, farmers and manufacturers would benefit,” he said.
Regarding the announcements for textile sector, representatives of Indian Texpreneurs Federation said the announcement on abolishing anti-dumping duty on purified terephthalic acid (PTA) will be a big boost to the textile sector’s export competitiveness. The formulation of National Technical Textiles Mission will help tap the huge potential of the sector.
The industrialists also expressed disappointed over no announcement on new train services and infrastructure development in Coimbatore.
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