The Finance Minister of India, Nirmala Sitharaman reversed many of her announcements made during the budget announcement and announced a few new changes yesterday to reverse the economic slide that we are experiencing because of the policies of the last few years.
The Finance Minister of India, Nirmala Sitharaman reversed many of her announcements made during the budget announcement and announced a few new changes yesterday to reverse the economic slide that we are experiencing because of the policies of the last few years.
As always, industry bodies have welcomed the announcement. Today, SIEMA through a press release noted the salient points which they favoured during yesterday’s press announcement by the FM.
SIEMA highlighted the following changes as beneficial to the industrial community.
- GST returns to be further simplified and time bound GST refund: Refund of GST.
- Within 30 days for MSME’s will ease their finances.
- Banks to pass on the Interest rate reduction to Consumers particularly Industries, though the RBI has cut the REPO rate continually the Banks did not pass on the benefits to the Industries, this announcement will not only reduce the interest rates but boost the industry sentiments when we are competing with global companies who get credit at very cheap rates.
- The easing of One time settlement for MSME’s is another welcome step.
- Single definition for MSME’s had been a long time demand of SIEMA, the announcement of Government coming up with such a definition is a step towards fulfilment of the long time demand of the sector. We request for the definition at the earliest.
- Infusion of liquidity in the market through PSU banks.
- The announcements to boost the Automobile sector will revive the foundry and engineering industry in Coimbatore region.
While the expectation around the budget was one that will favour spending and kick start the economy, it was widely regarded as one of the budgets that didn’t inspire in recent memory. In particular the announcements related to investments were considered to be affecting negatively with many top investments leaving the country in the last few months since the budget announcement. Some of the reversals in yesterday’s announcement have set the record straight while there is much to be done.