A post-budget reaction, Union Minister for Micro, Small and Medium Enterprises (MoMSME), Shri Nitin Jairam Gadkari warmly welcomed the Budget. Talking to Faiz Askari of SMEStreet, Shri Gadkari mentioned this budget has highlighted PM Modi’s vision for bringing a positive and sustainable economy. “This budget, in particular, is full of numerous innovative initiatives for aspirational Indian MSMEs and youth. Massive boost for investment boost in infrastructure, affordable housing, agriculture, alternate power such as solar, rural development all putting together are complimenting the MSMEs,” commented Shri Gadkari after coming from the Parliament session where the finance Minister submitted the Union Budget 2020.
Shri Gadkari also highlighted that government’s attention towards infrastructure development related to irrigation, solar energy, education, healthcare and drinking water and sanitation and enhanced allocations in different sectors would help revive industrial production and generate employment opportunities creating more than two crore jobs in the fiscal year.
The MoMSME called the budget growth-oriented and said it maintains a perfect balance between investment and fiscal deficit.
“Although, we are continuously growing in the index of Ease of Doing Business since last around four years, but this Budget has again re-narrated Government’s commitment towards ensuring ease of doing business for startups and MSMEs. The threshold of turnover for getting the audit is increased five times. This is big positive news for MSMEs which are around this stage,” added Shri Gadkari while talking about some major developments related to MSMEs in this Budget.
Further sharing his views, Shri Gadkari emphasized that this budget will pave way for Prime Minister Narendra Modi’s target of making India a 5 trillion dollar economy by 2025 with a focus on social justice by taking care of the tribal, Dalits, Rural, Poor and other backward and deprived sections of the society.
However, on the question about a much-awaited expectation from MSME entrepreneurs for a Fund of Funds, Shri Gadkari has said, “Yes, that plan is still in process. Govt is working on creation of such fund for MSMEs and soon we can expect some major announcement in that direction.”
Well, SMEStreet have reported earlier that Government is planning for a large Fund which is often getting pegged as Fund of Funds for MSMEs which will be going to make a great impact on MSME and startup credit availability and credit access scenario.
Further elaborating the Budget 2020’s announcement, according to him some highlights in the budget speech are a relief in personal taxation in the middle class by introducing some changes in tax slabs, he said adding that the FM has given something to everyone particularly the weaker & deprived sections and men and women engaged in farm sector so as to enhance their income. Moreover, from the MSME perspective the app-based financial documentation processing in tax filing, customs duty structure hike on imports and Invoice Financing Through TReDS.