Performance of MSME Sector: Introduction of Tax Rebates

The government may explore the possibility of introduction of employment linked tax rebates to entrepreneurs to boost the MSMEs and Start-ups. This idea has been mooted by apex chamber FICCI in its pre-budget memorandum. The government is committed to promote Make in India initiative to take India’s manufacturing to 25% of GDP from the present […]

The government may explore the possibility of introduction of employment linked tax rebates to entrepreneurs to boost the MSMEs and Start-ups.

This idea has been mooted by apex chamber FICCI in its pre-budget memorandum.

The government is committed to promote Make in India initiative to take India’s manufacturing to 25% of GDP from the present 16% in the next ten years. To achieve this target, it is critical to boost MSME sector which accounts for 40% of India’s manufacturing and has huge potential for job creation.

The Manufacturing Segment of the Micro, Small and Medium Enterprises sector contributes about 8% to India’s GDP. There is no capital infusion of Rs. 24,000 crore under the 12^th Five Year Plan to the sector.

This was indicated by the Minister of State, Micro, Small and Medium Enterprises,

Giriraj Singh.