Industries and Traders Applaud Union Budget for Its Focus on MSME Development and Tax Relief

Industries and trade associations expressed approval for the Union Budget presented by Finance Minister Nirmala Sitharaman. Neeraj Singhal, President of The Indian Industries Association, noted the increased focus on the MSME sector compared to previous budgets. The budget emphasised agriculture, MSMEs, investment, and exports as key drivers towards a developed India, with reforms promoting inclusivity.

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The finance minister highlighted the significance of MSMEs, describing them as a crucial engine for development. MSMEs contribute 45% to exports. To enhance their efficiency, technological advancement, and capital access, the budget increased investment and turnover limits for MSME classification to 2.5 and 2 times, respectively. Additionally, measures to improve credit availability with guarantee cover were announced.

Tax Relief and Economic Growth

Tax lawyer Ashish Tripathi welcomed the income tax relief measures introduced in the budget. He stated, "While looking for relief for themselves in every Budget, making income up to Rs 12 lakh tax-free for the middle class is a strong step taken by the government towards becoming the third largest economy in the world." He also praised the announcement of new tax laws as timely and necessary.

Sandeep Bansal, President of Akhil Bhartiya Udyog Vyapar Mandal, expressed optimism about the budget's impact on middle-class entrepreneurs. He believes it will stimulate economic growth in the country. The budget's provisions are expected to provide a boost to both entrepreneurs and the broader economy.

The Union Budget's focus on enhancing credit availability and supporting MSMEs reflects a commitment to fostering economic growth. By increasing investment limits and providing tax relief, the government aims to strengthen key sectors and support India's journey towards becoming a leading global economy.