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Last updated: 30 Jan, 2018  

msme-THMB-2010.jpg MSME sector, exports need Budget push

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Bikky Khosla | 30 Jan, 2018

The Economic Survey, released by the government on Monday, paints a bright picture for the economy's short and medium term growth. It views the economy should grow 6.75 percent this fiscal and 7.0 to 7.5 percent in 2018-19, riding on the series of reforms undertaken over the past year. This level of growth, the survey adds, will reinstate India as the world's fastest growing major economy. All these sound positive.

On exports, the survey views that the global economy, as per the upward revision of the earlier projections by the IMF, is gathering pace and is expected to accelerate from 3.2 percent in 2016 to 3.6 percent in 2017 and 3.7 percent in 2018. This, in turn, should boost India's exports. This view, along with mention about some possible global risks, particularly related to global stock markets, sound logical.

On the MSME sector, the survey points out lack of credit as a major obstacle. Mentioning latest data on credit disbursed by banks, the survey states that out of a total outstanding credit of Rs. 26041 billion as in November 2017, 82.6 percent of the amount was lent to large enterprises. The MSME sector received only 17.4 percent of the total credit outstanding. This is a major concern, considering the sectors’ massive contribution to exports and employment generation.

Considering the above, it will be interesting to see what measures the Budget comes with for these two sectors. The survey shows that the Rebate of State Levies (ROSL) has increased exports of ready-made garments by about 16 percent. So, it is clear now that exports incentives do work, and I hope the Budget will introduce some explicit sops for the sector. Similarly, it will be interesting to see what measures the Budget comes with to address the credit woes of the MSME sector.

I invite your opinions.

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MSME - Middle Class - Spinal Chord of the Country
Vikram | Tue Feb 6 06:07:17 2018
Nation wide and world over simplified phenomena that Middle class and Micro & Small Industries must be ignored and they will sustain at any cost and will pay more than 80% of their earning as tax even after tax deducted at source. Every middle class paid tax at source then bus ticket to rickshaws to taxi to coffee to tea to anything to everything again giving service tax that as on today neither Constitution nor any Supreme Court given any definition what is service. Within short span of time intercourse and breast feeding will be taxed that marriage already under the law of tax regime. Loot the country which was the bane of Colonial Mugal ruling balance which we are following to allow politico-bureaucratic alliance to syphon out nations reserve. Entire india Politico bureaucratic alliances children studying out side the country then doing business with huge investment from their parents that one Parsad [corporator-ward member] salary is Rs.300 per month Chairperson of a Municipality salary si Rs.1300 where MLA & MP are tax free earning at lakhs and crores along with 20 to 40% commission from their development fund. Entire looted fund is if invested in India development will be growing where it is investing or we can say spending in other country which develops those Countries. MSME officials are most scrupulous people any subsidy to be released without 20% they will never ink the release letter. Blabbered by all the PM&CM but who is assigned to implement nor execute Pranam

Aqeel zaidi | Sat Feb 3 16:25:55 2018
That is amazing Congrats to our govt for being global leader in businesd

for subsidies or benefit from MAME CERTIFICATE
jignesh sardhara | Wed Jan 31 11:39:13 2018
Please share information to get benefit for increase industrial growth I have start new business so please share infornation

HAKIMUDDIN HAIDERI | Wed Jan 31 09:36:45 2018
At least 40% of the total credit outstanding MSME should be sanctioned for major part for the export. export rate should grow then

Ajoy Das | Wed Jan 31 04:57:54 2018
The present government has brought out many good plans for the MSME sector. But it is lacking to take care of,if they are implemented properly. Stringent action should be taken against the persons concerned who are soldering responsibility for the implementation and twisting or turning the process in otherways. Secondly a single term is not enough to gauge the outcome. Atleast it should be two consecutive terms .

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