Hon’ble Union Minister of Finance, Shri Arun Jaitley today announced the Union Budget for the year 2017-18. No specific announcement was made with respect to handicrafts sector however there are certain measures which will impact the handicrafts which include the following:-
Reduction of Income Tax on MSME (reduced to 25%) – In order to make MSME companies more viable and also to encourage firms to migrate to company format, the rate of tax for smaller companies with annual turnover upto Rs. 50 crore has been reduced to 25%.
Development of Infrastructure for exports – In order to focus on export infrastructure in a competitive world, a new and restructured Central scheme, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18
Emphasis on Skill Development – The number of Pradhan Mantri Kaushal Kendras (PMKK) have been proposed to be extended to more than 600 districts across the country. 100 India International Skills Centres will be established across the country. These Centres would offer advanced training and also courses in foreign languages.
Fostering a conduce labour environment – In order to foster a conducive labour environment wherein labour rights are protected and harmonious labour relations lead to higher productivity. Legislative reforms will be undertaken to simplify, rationalise and amalgamate the existing labour laws into 4 Codes on (i) wages; (ii) industrial relations; (iii) social security and welfare; and (iv) safety and working conditions.
Mr. D. Kumar, Chairman-EPCH said the budget did not offer any specific scheme pertaining to handicrafts sector but initiatives towards export infrastructure and skill development would benefit the exports sector in the longer run.
He further said, the budget offers various incentives to the agriculture sector, however, over 7 million handicrafts artisans who are producing the best of Indian handicrafts and generating much needed foreign exchange for the country are still reading between the lines and hoping that they will ultimately benefit from the budget proposals.
The exports of handicrafts during the latest period April- December 2016-17 have registered a growth of 12.10% in Rupee terms and stands at Rs. 17937.05 crores. However, the growth in dollar terms is 8.25 % with exports of US $ 2673.48 million. The export target of US$ 3600 million (Rs. 23560.00 crores) is set for the year 2016-17 and going by the current trend we hope to achieve the target.
