For the 11,000-12,000 MSMEs in Pune and Pimpri-Chinchwad, the Budget was a mixed bouquet, with some disappointments along with some relief. Micro, Small and Medium Enterprises (MSMEs) have given a cautious welcome to Finance Minister Nirmala Sitharaman’s Union Budget for 2022-23. While the much-awaited relaxation in the lending rates did not materialise, duty reduction in steel can help in cooling down the prices of raw material.
Prashant Girbane, director general of Mahratta Chamber of Commerce Industries and Agriculture (MCCIA), welcomed the Budget and called it growth-oriented.
“A 35% increase in CapEx is encouraging. The reduced fiscal deficit of 6.4% of GDP for next financial year is good… we would have been happier with the number closer to 6%. MSMEs will be thankful for the extension of the Emergency Credit Line Guarantee Scheme scheme for credit guarantees, reduced import duties on metals and increased budget for the MSME department. Start-up investors and hence start-ups would be happy with the cap of 15% on long-term capital gains tax. Emphasis on digital infrastructure and digital payments will help not just short but medium and long-term growth,” he said.
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For the 11,000-12,000 MSMEs in Pune and Pimpri-Chinchwad, the Budget was a mixed bouquet, with some disappointments along with some relief.
Sandeep Belsare, president of Pimpri-Chinchwad Small Scale Industries Association, said they were disappointed as there was no relief package or lending rate cuts for them. However, Belsare said the custom duty and anti-dumping duty reduction in iron will help them in terms of reduced raw material costs. “Similar relief was expected in steel but that was not given,” he said.
Belsare and others had asked for a regulatory body to control prices of steel and iron, which did not materialise. Extension of the ECLGS does not provide liquidity to the sector although they were expecting one, he said.
Abhay Bhor, president of the Forum of Small Scale Industries, said they were expecting a special package for sick and closed units, which didn’t happen. “The push for electronic vehicles is a welcome move which will help the sector,” he said.
For the cooperative sector, the decision of reducing Alternate Minimum Tax
from 18.5 per cent to 15 per cent has been welcomed by the sector. Sudhir Pandit, administrator of Rupee Cooperative Bank, said this has brought cooperative societies at par with corporates.
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