The much awaited union budget 2021 was submitted todayby Finance minister Nirmala Seetharaman.
Coimbatore: Big industries have conveyed their happiness about the union budget whereas the micro industries have opined that they are disappointed and heavily upset since no importance has been given to them.
The much awaited union budget 2021 was submitted today by Finance minister Nirmala Seetharaman. This was the first budget that was to be presented without papers. Since this is the first budget presented after the pandemic outbreak, there was more expectations among the industrialists of all sectors. Big industries have welcomed and micro industries have conveyed their disappointment and upset over the budget announcements.
Indian Chamber of Commerce and Industry (ICCI) President, C.Balasubramanian said,"We whole heartedly welcome the budget announcements. Especially procedures simplified under GST scheme, New 7 integrated textile region and apparel parks (MITRA) will be a big boost to the industry development. We expect one of the it will be established in Coimbatore which would become the first ever PSU in the region. Import Duty on Copper scrap reduced from 5% to 2.5%. For Iron and steel, customs duty on imports reduced to 7.5% from 12.5% and various other announcement would help MSME in a big way.”
Coimbatore District Small Industries Association (CODISSIA) president, V.M.Ramesh Babu said,"At the outset, CODISSIA appreciate and welcome the first Paperless form of Budget Announcement, by saving about Rs.140 crores on the same. This Budget has taken a huge dimension emphasizing on six pillars schemes viz. health and well-being, physical, financial, capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D and minimum government and maximum governance.
The following points on today’s budget announcements would immensely benefit the MSME sector across India.
* Rs. 15,700 Crore allocation to MSME Sector.
* For Iron and steel, customs duty on imports reduced to 7.5% from 12.5%
* For metal recyclers (Scrap), import duty is exempted for a period up to 31.3.2022.
* To ensure faster resolution of cases NCLT framework will be strengthened, e-courts system shall be implemented and alternate methods of debt resolution and framework for MSMEs shall be introduced.
* New scrappage policy - 20 years in case of personal vehicles and 15 years in case of commercial vehicles.
* Seven textile parks to come up in over 3 years.
* 217 projects worth over Rs. 1 lakh crore completed under National Infrastructure Pipeline.
* Rs 62,000 crores allocated for the building of Metro Phase 2.
* More economic corridors being planned to boost the road of infrastructure.
* Government aims to complete 11,000km of national highway infrastructure this year.
* An Aim to complete 11,000 km of national highway infrastructure this year
* 3500 kms of national highway works have been proposed at an investment of Rs.1.03 lakh crore, including construction. Apart from this, various announcements made in all sectors are appreciable.”
The Southern India Engineering Manufacturers Association (SIEMA) president, K.V.Karthik said," SIEMA thanks the Government for accepting our recommendation to reduce the customs duty on some types of steel and stainless steel, revoking Anti Dumping Duty and CVD on steel products and exempting duty for steel scrap.
The following announcements in the Union Budget are expected to help the pump industry:
* Increased allotment for Micro Irrigation.
* The increased focus on Jal Jeevan Mission.
* Extension of additional deduction of Rs. 1.5 lakhs for affordable housing loans. We welcome the various measures taken to increase tax compliance by reducing the time limit for re-opening assessments and increasing the tax audit limit from 5 crore to 10 crores.
While the allotment of Rs. 15,700 crore for MSME sector in the budget is appreciated, more details are needed to see how MSME's will benefit from this announcement.
We are disappointed as the Central Government did not extend the moratorium of the ECLGS, this was an expectation of our members who are facing liquidity issues due to the raw material price increase. Overall, we are happy with the Budget Announcements."
Tamilnadu Association for Cottage and Micro Enterprises (TACT) district President, J James said, "Announcements made to reduce raw material prices are welcomed. There are 6 crore MSME industries established across the nation. Allocation of Rs 15,700 crores will not be sufficient. Requests given from Micro industries sector have not been considered which is highly disappointing and made industrialists upset.
The tax rates under GST scheme has also not been reduced. Privatisation of various government organisations is not fair and it will affect the benefits of common people in a big way. Overall the budget is highly disappointing."
Coimbatore, Tiruppur Districts Micro and Cottage Entrepreneurs Association (COTMA) President, C.SivaKumar said, "Tax filing procedures made easy under GST scheme, Reduction of customs duty on raw materials are welcomed. But we expected more strict actions taken to reduce the abnormal price upsurge of raw materials such as forming special committee etc. Also exemption limit on income tax for individuals has not been increased. Micro sector shoul be given with more importance in Rs 20,000 crores fund allotment for all banks."
Kovai Power Driven Pumps and Spares Manufacturers Association (KOPMA) President, K Maniraj said,"Allocation of just Rs 15,000 crores to one of the biggest MSME sector which gives more job opportunity is shocking. GST tax rates for pump sets not reduced, Considering the welfare of the micro sector the interest levied by banks during first six months must be waived off, steps to reduce petrol, diesel prices were not addressed.
These are highly disappointing. No importance given to Micro industries sector. Also no announcements given on infrastructure development in Coimbatore and increasing Railway services. Budget has made all the micro industrialists shocked and upset."