Bengaluru: The Karnataka Small Scale Industries Association (KASSIA) on Wednesday said the budget presented by Union Finance Minister Aurn Jaitley, has indeed laid welcome emphasis on infrastructure development and augmentation which is crucial for the growth of the economy.
The KASSIA said the allocation of Rs.3.96 lakh crore for infrastructure development and the special emphasis on road development should help carry forward the work undertaken in this important segment in the previous years. It said that even this amount of allocation may not be adequate considering the infrastructure challenges that face the country. “The thrust laid on rural roads and rural infrastructure and the allocation provided will hopefully give a spurt to the growth of the economy, at a time when there are serious fears of slow down and contraction. We welcome the move to reduce income tax payable by small companies up to turnover of Rs.50 crores by 5% to 25%. This should meet the demands of this sector as far as the income tax is concerned by giving the necessary encouragement for greater investments, hopefully,’’ said A Padmanabha, president, Karnataka Small Scale Industries Association.
Padmanabha said the doubling of the allocation under the Mudra Scheme to Rs.2.44 lakh crore is indeed important at a time when the SMEs have to struggle to access affordable funds for their development. “The Micro and Small Enterprises sector in particular suffers from inadequate access to finance at affordable rates of interest which is an area that needs to be particularly addressed in order to help this sector which has a big share in creating jobs and employment to the vulnerable section of the society,’ he said.
He said the reforms proposed in the higher education area and the moves to give autonomy to colleges run to high standards are the need of the hour. The special emphasis on vocational training and skill development are also in line with the current policies of the Government as well as the requirement of the Indian economy, he said.
He opined that it is not clear as to how the Government, which is laying a lot of stress on increasing the share of manufacturing in the GDP, will bring this about in the absence of clearly spelt out measures to achieve this, in the budget. This appears to be an area that has not been given the required emphasis.
“While the Government’s emphasis on growth with stability as it should be, the requirement for kick starting the economy which is perceptibly slowing down is extremely important. It is to be hoped that the Government would be able to do this in the course of the year with the appropriate implementation of the measures proposed in the budget and the right targeting so as to address the critical segments of the economy,’’ he said.