Union Budget has progressive reform measures to support growth: All India Association of Industries
We need more steps to support MSMEs and promote consumption
Vijay Kalantri, President, All India Association of Industries (AIAI) lauded the government’s move to raise additional resource for infrastructure by announcing National Monetization Pipeline and Development Finance Institution. At the same time, the government should set up credit enhancement fund to improve credit rating of private infrastructure projects. By improving credit rating of infrastructure projects, we can attract investment from pension funds, insurance funds and other long term investors, said Kalantri.
“The Association appreciates the Budget announcement of historic reforms such as privatization of two state-run banks, and disinvestment in Life Insurance Corporation, relaxation of FDI limit in insurance, setting up Development Finance Institution for infrastructure, etc.”
The government’s mammoth budget allocation for infrastructure and Urban Swachh Bharat Mission 2.0 will stimulate investment and economic recovery and growth added Mr. Kalantri.
“To improve reduce compliance burden on small firms, Hon’ble Finance Minister proposed to decriminalize certain offenses under Limited Liability Partnership (LLP) and increased turnover limit for small companies under Companies Act 2013.”
“In order to improve tax administration, the Finance Minister has announced faceless Dispute Resolution Panel, adopting faceless process in Income Tax Appellate Tribunal and increasing turnover limit for audit exemption to Rs. 10 crore not reopening of cases of more than 3 years, exemption from TDS, Streamlining Double Taxation and advance Tax system.”
Reacting to budget announcements, Mr. Kalantri, said, “The Budget could have emphasized on effective implementation of One District One Product scheme and Emergency Credit Guarantee Scheme for MSMEs etc.”
“The Union Budget has promoted ‘Make in India’ by increasing customs duty on MSME products on chemicals, plastics, metal, solar cells and other products. At the same time, the government should take steps to prevent illicit import practices such as under-invoicing and import of counterfeit products from foreign countries.”
“All India Association of Industries (AIAI) welcomes the Union Budget 2021-22 which reflects the government’s commitment to economic reforms, improving ease of doing business and increasing spending on infrastructure. At the same time, the budget has not addressed some of the pressing challenges of MSMEs, which are poor access to collateral free loans, strengthening State Finance Corporations, supply of raw materials at reasonable cost etc. The budget could have also improved liquidity in the hands of common man by announcing a direct income transfer scheme.”
