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 12th Five Year Plan to the sector.
This was indicated by the Minister of State, Micro, Small and Medium Enterprises,
Giriraj Singh.