MSMEs Receive ‘goodies’ as Job Creation Worries Continue to Haunt Government.
KEEPING the focus on job creation, the Budget has made several announcements to boost micro, small and medium enterprises or MSMEs. But unlike what most people thought, it is not the reduction in the corporate tax rate (from 30 per cent to 25 per cent for companies with turnover of â¹50-250 crore) or the â¹3,794 crore provision for credit support, capital/interest subsidy and innovations, which would have the biggest impact on the sector.
According to Anil Bharadwaj, Secretary General, Federation of Indian Micro & Small and Medium Enterprises, the biggest announcement for the MSME sector is extension of the facility of fixed-term employment to all sectors. “This is a big move as it allows MSMEs to hire contract labour. Most manufacturing MSMEs have seasonal production cycle and find it difficult to hire permanent labour,” says Bharadwaj.
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