Coimbatore: In a press release, following the announcement of the Union Budget 2019, V Krishnakumar, the President of the Southern India Engineering Manufacturers’ Association (SIEMA) stated, "SIEMA welcomes the Union Budget for the year 2019-20.
Coimbatore: In a press release, following the announcement of the Union Budget 2019, V Krishnakumar, the President of the Southern India Engineering Manufacturers’ Association (SIEMA) stated, "SIEMA welcomes the Union Budget for the year 2019-20.
We appreciate the various announcements including the Union Government creating a payment platform for MSMEs to enable them to pay bills and save time, the 2 % interest subvention for GST-registered MSMEs on fresh or incremental loans and the fully automated GST refund module that is to be implemented."
V Krishnakumar also welcomed announcements like the BharatMala, Sagarmala and UDAN scheme to bridge the rural-urban divide and improving our transport infrastructure and the Pradhan Mantri Gram Sadak Yojana phase 3 which envisages upgrade of 1,25,000 km of road length over the next five years. He expressed satisfaction with the announcements on agri and rural industries where a 100 new clusters are to be set up in 2019-20, to enable 50,000 artisans to come into the economic value chain under the Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI).
The SIEMA President opined that the Jal Shakti Ministry integrated many water management ministries. "Rain water harvesting, ground water recharge and water supply management across the country will be implemented through this Ministry which is a welcome move," he added.
"We expected more sops for MSMEs, which was not seen in the budget. No tangible benefits or growth path has been highlighted for MSMEs, especially in the manufacturing sector," said V Krishnakumar. "One Rupee special additional duty and road and infrastructure cess on diesel and petrol will be an additional burden to the industries. Due to this, the cost of input / output material will increase. We also expect an announcement from the GST Council on reduction of GST rates for Engineering Job Works from 18% to 5%."
We appreciate the various announcements including the Union Government creating a payment platform for MSMEs to enable them to pay bills and save time, the 2 % interest subvention for GST-registered MSMEs on fresh or incremental loans and the fully automated GST refund module that is to be implemented."
V Krishnakumar also welcomed announcements like the BharatMala, Sagarmala and UDAN scheme to bridge the rural-urban divide and improving our transport infrastructure and the Pradhan Mantri Gram Sadak Yojana phase 3 which envisages upgrade of 1,25,000 km of road length over the next five years. He expressed satisfaction with the announcements on agri and rural industries where a 100 new clusters are to be set up in 2019-20, to enable 50,000 artisans to come into the economic value chain under the Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI).
The SIEMA President opined that the Jal Shakti Ministry integrated many water management ministries. "Rain water harvesting, ground water recharge and water supply management across the country will be implemented through this Ministry which is a welcome move," he added.
"We expected more sops for MSMEs, which was not seen in the budget. No tangible benefits or growth path has been highlighted for MSMEs, especially in the manufacturing sector," said V Krishnakumar. "One Rupee special additional duty and road and infrastructure cess on diesel and petrol will be an additional burden to the industries. Due to this, the cost of input / output material will increase. We also expect an announcement from the GST Council on reduction of GST rates for Engineering Job Works from 18% to 5%."