SME Times is powered by   
Search News
Just in:   • 'Economic revival may take 6-9 months'  • Unlock 1: India Inc hails ease in restrictions  • National AI portal launched  • Women will have a leading role in post COVID-19 economy: Pradhan  • NHAI plans to develop Model Stretches in every state 
Last updated: 29 Jan, 2019  

Budget.9.Thmb.jpg Budget 2019: Industry, MSMEs need support

   Top Stories
» 'Economic revival may take 6-9 months'
» Unlock 1: India Inc hails ease in restrictions
» National AI portal launched
» Women will have a leading role in post COVID-19 economy: Pradhan
» Core sector output plunges by over 38% in April
Bikky Khosla | 29 Jan, 2019

The Government will present its Budget or Vote-on-Account in the Lok Sabha on February 1. With the next general elections expected in May and in the backdrop of the victories by its Opposition parties in three state polls last month, it is widely expected that the Government will try to woo rural and urban middle-class voters and farmers in this Budget, but economy watchers view that the Indian industry needs no less attention, considering several major challenges presently facing it.

According to official figures, the industrial output growth rate slowed to 0.5 percent -- its lowest rise since June 2017-- in November. This is not a good signal, and though the 5-percent growth in IIP during the April-November 2018 period is much higher than the 3.2-percent increase posted in the corresponding period last year, the recent fall – which, according to analysts, can be attributed to lower domestic demand, lower rural spending and lower lending to various sectors including MSMEs – should be taken as a warning sign.

Exports, too, are not doing well recently. External trade figures for December show a lacklustre exports growth of 0.34 percent to $27.93 billion from the $27.83 billion reported for the corresponding month of 2017. These figures are not that encouraging, particularly because major labour-intensive sectors including jewellery, engineering, leather, and handloom showed negative growth in the month. Also, SME exporters have long been complaining of poor credit flow and inadequate fiscal support and the upcoming Budget should take these concerns into account.

There is no doubt that the farm sector is ailing; our farmers are in distress, and everyone is expecting that the Budget or Vote-on-Account to be introduced just a few months before the next general elections, will be farmer-friendly. But it is equally important that the Centre does not turn a blind eye to the needs of the industry, including that of the manufacturing sector and MSMEs. Politically, too, it is important that the government gives a strong signal through the Budget of its willingness to back its past measures to support the industry.

I invite your opinions.
Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 01 Jun, 2020
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» China's forex reserves reach USD 2.85 trillion(1)
» FM reviews macro-economy in FSDC meet(1)
» Appoint distributors, expand your business(1)
» MSME stimulus(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter