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The Southern India Mills’ Association

Committed to Foster the Growth of the Textile Industry

Economic growth to benefit industries

But it lacks measures to boost MSMEs, says the industry; separate package for MSMEs sought
The interim budget presented on Friday is expected to increase consumption by the public, leading to economic growth and higher demand for industries, according to industrial associations here. However, the industry is also disappointed with the budget as it lacks measures to boost the MSMEs.
Chairman of Confederation of Indian Industry, Coimbatore Zone, M. Ramesh, and convenor of its taxation panel here, G. Karthikeyan, told presspersons that the budget had a lot of measures for job creation. The low income and middle income segments would benefit from the announcements. “People should have more money and if they start spending, it will lead to growth,” said Mr. Ramesh. The online system for verification of IT documents was a welcome measure, added Mr. Karthikeyan. R. Ramamoorthy, president of Coimbatore District Small Industries Association, said the fiscal deficit had been controlled, indicating the economy would start improving. “We welcome the announcements for the agriculture sector and the MSMEs. But the MSMEs need a separate package,” he said. These units did not need waivers. What they required were subsidies to support growth.
According to V. Krishnakumar, president of the Southern India Engineering Manufacturers Association, the Association is disappointed with the budget as there is no tangible growth vision for the MSMEs, especially those in the manufacturing sector. However, the enhanced spending on agriculture sector will boost sales of agricultural pumpsets, benefiting the manufacturers in Coimbatore.
President of the Indian Chamber of Commerce and Industry, Coimbatore, V. Lakshminarayanasamy, said there was big push for renewable energy and data processing. And, the budget was positive on employment generation. The announcements would promote expenditure thus expanding the market for industries. But, there was no announcement or measure to promote investment by industries. J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, said the budget was disappointing as even at this juncture when the current government was completing its term, there was no specific measure to boost growth of micro units.
According to S. Ravikumar, president of Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association, the budget does not give any relief to the cottage industries. It has not met the demands of the tiny units. Kovai Power Driven Pumps and Spares Manufacturers’ Association president K. Maniraj has said, in a press release, that according to the budget announcement, the tax collection has doubled under GST. But the micro units have been hit by the tax. It also said that Rs. 7.23 lakh crore has been disbursed under Mudra loan. Micro units continue to struggle to get collateral-free loan under the scheme.
S. Surulivel, president of the Coimbatore SIDCO Industrial Estate Manufacturers’ Welfare Association, said the budget is disappointing to the MSMEs. The 2 % interest subvention should be extended to all MSMEs and not just the GST registered units. It should create more awareness among industries on the Government e-market place.
Welcoming the announcements, Coimbatore Compressor Industries Association has said that the budget is expected to revive agriculture, rural industry, fisheries, and equipment manufacturing sectors.