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Follow UsThe scenario has changed now. When the Finance Minister presents the Budget in the Parliament, each and every one — the common man, small-time business players, large enterprise owners and media — are glued into their TV sets to know whether the government would bring in something for them to cheer about.
As the current Finance Minister Pranab Mukherjee is all set to present the Union Budget for 2012-13 on March 16, small and medium scale enterprises (SMEs) in the country are keeping their fingers crossed. They expect the FM to announce some sops for them, as it is one of the fastest growing sectors in the country.
Wait is over, BSE SME Exchange goes live
They are highly concerned about the huge taxes and duties, which they say are eating into their profits. In the context of galloping prices of essential commodities and spiraling cost of life, all they need is some reductions in interest rates and exemptions in taxes, which are directly affecting their businesses.
CIOL lent an ear to a few SMEs in the city to know about their expectations from the Budget.
Rama Jamili, co-founder and director, Fopping.com
For the past few years, retail and e-retail contributed tremendously to the Indian growth story. I think it is time for the government to recognize e-tailing as an industry, which will help in framing policies to support further growth. Tax incentives and credits to the e-commerce sector will open the floodgates for innovative start-ups.
Additionally, broadband connectivity and Internet penetration are a major hindrance. Any policy to aid broadband connectivity across villages and II- and III-tier towns will increase the Internet penetration.
K Sahasranam, MD, Cimtrix Systems Pvt Ltd
Being the owner of a manufacturer of special tools, I think that the government should take steps to curb inflation by pumping in more money to the market, as the impact of economic slowdown is quicker in the MSME sector.
Also, we have to achieve 9 per cent target GDP. The government should make easier the money availability for SMEs and push up production by taking necessary steps.
Brian Wong, vice president, Global Supplier Development, Alibaba.com
We do hope that this budget would be an MSME-friendly budget with focused improvements for the country’s Internet infrastructure. Providing more reliable and accessible Internet broadband in India will lead to a healthier e-commerce environment allowing local SMEs to reach new customer bases thereby stimulating further growth for India’s future.
We also hope that some sustainable relief measures in terms of subsidies for India’s SME industry will be among the initiated policies.
Ramesh S, CEO, Powertronix Systems
The Income Tax (IT) slab in India is so low. So, I expect the government to introduce a new slab in the current budget. It will be really great if the slab is raised to Rs. 5 lakh from the current Rs. 3 lakh. The FM should also extend tax exemptions and subsidy to all products.
Vasucky KN, CEO, Megha Imaging
What I feel is that the government has to introduce GST (Goods and Services Tax) in the current budget. Also, the IT slabs must be raised to a higher level, so that millions of small and medium business owners benefit.
Shashidhar BP, CEO, Kartik Industries
In states like Karnataka, the VAT (Value Added Tax) is much higher than that of other states. So, I would be really happy if the Centre introduces a unified VAT system for all states in the upcoming Budget. Also, since the cost of living is rising day by day, the IT exemption slabs must be raised to benefit more people in the country.
K.Rajakumar, CEO, Conwerge Web Services Pvt Ltd
The government needs to be more serious about the SME sector. Access to funding is one of the major problems IT start-ups like ours are facing today. So, I hope that the FM will introduce new policies to make funding for start-ups easier.