Union finance minister urged to incentivise startups, MSME units for employment and revenue generation

MADURAI: With only two days left for Finance Minister Nirmala Sitharaman to present Union Budget 2022-23, Tamilnadu Chamber of Commerce and Industry has briefed her on its expectations for the sector micro-small and medium-sized enterprises (MSMEs). Their main demand was that the budget focus on simplifying taxation, investment and providing new incentives for Indian startups.
The chamber said offering incentives to startups and MSME units could help generate income and jobs, which are key to stabilizing the economy recovering from the hit suffered due to the Covid pandemic. -19 for two years. Measures such as streamlining approvals, compliance for ease of doing business, faster adoption of technology and accessibility of funds that could mobilize growth were among their expectations.
Highlighting the exorbitant prices of raw materials which are not uniform and controlled, they urged the government to streamline the GST on manufacturing for MSMEs and reduce it to at least 12% from the existing 18%.
Specific Production Linked Incentive (PLI) programs for 13 sectors – Automotive Components, Automotive, Aviation, Chemicals, Electronic Systems, Food Processing Medical Devices, Metals & Mining, Pharmaceuticals, Renewable Energy, Telecommunications, Textiles and clothing – have been very successful. Various sectors are also expected to be added under the program to create national manufacturing champions and generate more employment opportunities.
Government programs run by lending banks for MSMEs and SMEs are expected to be extended at least until the end of calendar year 2022. Support programs for infrastructure and job creation are expected to continue. Stating that overall demand for credit in the country is picking up, they added that there should be a push towards affordable housing and strengthen existing financing systems to provide liquidity to stalled property projects.
“Given that the MSME sector plays a very vital role in developing the national economy and creating more job opportunities in both rural and urban areas, we are optimistic that the Minister of Finance will certainly respond to the expectations of the MSME sector in the upcoming Union Budget 2022-23,” said Chamber Speaker N Jegatheesan.

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