NEW DELHI: The Association of Indian Entrepreneurs, representing the MSMEs, on Sunday said the budget presented by Union Finance Minister Nirmala Sitharaman lacks specific announcements for the micro, small and medium enterprises, which was highly expected.
This is a disappointing budget that increases worries about the future. It is a budget that does not speak of relief. GST should have been restructured to suit value-added tax models. Just as Production Linked Incentives (PLIs) are given to corporates, a 'Value Added Incentive' should have been given to small and micro enterprises, the Association of Indian Entrepreneurs, National Chairman K E Raghunathan said.
"Despite various announcements, allocations and incentives across several sectors, it is disappointing that this budget lacks the specific announcements that the MSME industries highly expected", he said.
To be specific, while the MSMEs have been asking for loans without collateral, the finance minister says this is being implemented. But it is not happening in practice. The Finance Minister said that prices of raw materials must be controlled. But in reality, they are not," he said.
Observing that an Emergency Relief Fund should have been established in the budget for protecting the MSMEs, he said, it has been six months since the US tariffs were imposed and many businesses were in the brink of collapse.
"If employment is to be generated, the welfare of small and micro enterprises must be protected. When these businesses are struggling for survival, they are not in a position to focus on alternative paths. The expectation was that this budget would rescue small and micro industries. In reality, it is not," he said.