Budget wish list MSMEs: Cut compliance burden, create enabling ecosystem

Vijay C Roy

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Chandigarh, January 25

As the countdown begins for the Union Budget, the MSMEs and startups are hopeful it will focus on easing compliance burden, refuelling consumption demand, enhancing private investment and creating avenues for employment generation. Let’s have a look at what the North-based MSMEs and startups expect:

Reduce cost of business

There is an urgent need to reduce the cost of doing business for making MSMEs competitive with the corporate sector. The MSMEs are critical for job creation and income distribution. To make them more competitive, the government needs to reduce the regulatory burdens.

Cut corporate tax

The government has reduced corporate tax to 25% for private limited companies with a turnover of up to Rs 400 crore. The same benefit should be extended to all LLP, proprietary and partnership firms as most traders within the auto dealership community fall in this category.

Hassle-free credit

The manufacturing sector is of the view that schemes led by lending banks for MSMEs/SMEs should be extended at least till the end of calendar year 2022. Also, for the manufacturing and industrial sector, specific PLI schemes have been successful and more sectors should be included in these schemes.

Invest in e-learning platform

Digital transformation should be an ongoing effort by the government to pave the way for more agile and dynamic businesses. Deepak Mittal, CEO and co-founder, TO THE NEW, said: “It will be beneficial for the industry if the Budget provides some resources for building a robust e-learning ecosystem, implementing online innovation and scouting suitable technological tools to enhance the online learning ecosystem.”

Introduce more incubators

In order to boost startups, entrepreneurs are of the view that the government should consider launching more incubators and accelerator programmes to help companies across the country. The industry has also requested to look at FDI tax relief measures so that startups across the country can access foreign capital with more ease.

Sops for polymer industry

The Indian producers are targeting to achieve 3% of the global plastics and polymers market by 2025. Vikram Agarwal, co-chair, Industry Affairs Committee, PHD Chamber, has urged the government to incentivise the sector for adopting technology as it will help in reducing leakage of plastics into the environment and decoupling of plastics from fossil feedstock, giving rise to a circular economy.