LUCKNOW: The
MSME sector welcomed the
Union Budget saying it will provide a much needed boost to the small and medium industries that were severely hit by the
Covid-19 slowdown.
Indian Industries Association national president Pankaj Kumar said the special provision of Rs 15,700 crore for MSMEs in the
Budget would help significantly as they were grappling with shortage in demand.
“Special attention has been paid to
infrastructure and capital allocation. It has called for strengthening the manufacturing sector and production link incentives. There has been allocation of more capital in the health sector. A large number of MSMEs are involved in making medical and health equipment and the flow of capital will accelerate their revival and growth,” he said.
The reduction in
customs duty for iron and steel and increase of import duty on leather and accessories will ensure development of domestic industry, said Kumar, adding higher allocation for roads, defence and railways infrastructure will help MSMEs as they have a strong participation in these sectors.
Nikhil Sawhney, chairperson, CII northern region, said there are many positives for the MSMEs in the budget. “The rationalization of customs duty structure will boost the sector. The proposal to establish seven textile parks will help in technological upgradation and export competitiveness,” he added.
FICCI Uttar Pradesh chairperson Sharad Jaipuria said, “The specialty of this budget is that it has attempted to provide something for all sectors even after going through a global crisis. It has taken care of every class, like farmers, middle class, poor and women and will definitely help in pushing the economy. The increase in allocation to the Rural InfrastructureDevelopment Fund from Rs 30,000 crores to Rs 40,000 crores is a welcome step and will drive up demand.”