The Union Budget 2016-17 failed to impress local industrialists as they were hoping for more announcements to boost up the Micro Small and Medium Enterprises (MSME) sector. Industrialists feel Finance Minister Arun Jaitely had stressed on the agriculture sector and they had been neglected.

Anurag Agarwal, Secretary of the Meerut chapter of Indian Industries Association (IIA), said, “We were expecting a path-breaking budget wherein special schemes would be announced for MSMEs. We had hopes that funds would be allocated for infrastructure, limit of excise duty would be increased but nothing has happened expect some relaxation in income tax for those industries whose turnover is up to Rs 2 crore.”

Around 600 industries are members of IIA and over 2,000 units are running under MSMEs in Meerut which manufacture sports goods, power transformers and its parts, gymnastic equipment, textile, scissors, gems and jewellery.

Discussing the budget, Pankaj Gupta, an industrialist who manufactures electricity transformers, said, “Though the FM announced to set up food processing units, he didn’t disclose where they would be set up. The freight corridor will pass through from western UP but there is no clarity about setting up an industrial corridor on both sides of it.”

Stating that Jaitley did not discuss the Goods and Services Tax (GST), Gupta added, “Service tax was already quite high but has increased again. The minister should take a stand on GST as it would encourage the industry.”

Source: The Times of India